World Bank Document

Document of The World Bank

Public Disclosure Authorized Report No: ICR00003302

IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-4826-RU)

ON A LOAN

IN THE ORIGINAL AMOUNT OF US$ 50.00 MILLION

AND Public Disclosure Authorized REVISED AMOUNT OF US$ 32.19 MILLION

TO THE

RUSSIAN FEDERATION

FOR

REGISTRATION PROJECT

Public Disclosure Authorized August 29, 2016

Social, Urban, Rural and Resilience Global Practice Russian Federation Country Unit Europe and Central Asia Region

Public Disclosure Authorized

CURRENCY EQUIVALENTS

(Exchange Rate Effective August 16, 2016) Currency Unit = Ruble 63.84 Ruble = 1 USD

FISCAL YEAR January 1 – December 31

ABBREVIATIONS AND ACRONYMS

AM Aide Memoire BTI Bureau of Technical Inventory CAS Country Assistance Strategy CIS Commonwealth of Independent States ECA Europe and Central Asia FCA Federal Agency for Cadastre of Immovable Property (Cadastre Agency) FRS Federal Registration Service IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report ICT Information and Communications Technology IP Implementation Progress LA Loan Agreement LARIS Land Reform Implementation Support Project M&E Monitoring and Evaluation MED Ministry of Economic Development MFC Multifunctional Center MOJ Ministry of Justice NGO Non-Government Organization PAD Project Appraisal Document PDO Project Development Objective PIU Project Implementation Unit RUB Russian Ruble SOF Subject of the Federation UNECE United Nations Economic Commission for Europe US$ United States Dollar WPLA Working Party for Land Administration

Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Sector Manager: Jorge Munoz Project Team Leader: Juan Navas-Sabater ICR Team Leader: Juan Navas-Sabater ICR Primary Author: Daniel Roberge

RUSSIAN FEDERATION

Registration Project

CONTENTS

Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph

1. Project Context, Development Objectives and Design ...... 1 2. Key Factors Affecting Implementation and Outcomes ...... 6 3. Assessment of Outcomes ...... 11 4. Assessment of Risk to Development Outcome ...... 18 5. Assessment of Bank and Borrower Performance ...... 19 6. Lessons Learned ...... 22 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ...... 23 Annex 1. Project Costs and Financing ...... 24 Annex 2. Outputs by Component ...... 25 Annex 3. Economic and Financial Analysis ...... 29 Annex 4. Bank Lending and Implementation Support/Supervision Processes ...... 36 Annex 5. Beneficiary Survey Results ...... 40 Annex 6. Stakeholder Workshop Report and Results ...... 41 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ...... 43 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ...... 55 Annex 9. List of Supporting Documents...... 57 Annex 10. List of Contracts Realized under the Registration Project………………………….58

Project Data Sheet A. Basic Information

Country: Russian Federation Project Name: Registration Project Project ID: P093050 L/C/TF Number(s): IBRD-48260 ICR Date: 08/25/2016 ICR Type: Core ICR Lending Instrument: SIL Borrower: Russian Federation Original Total USD 50.00M Disbursed Amount: USD 31.17M Commitment: Revised Amount: USD 31.24M Environmental Category: B Implementing Agencies: FER Cofinanciers and Other External Partners:

B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 10/21/2002 Effectiveness: 04/23/2008 04/23/2008 08/23/2010 05/28/2014 Appraisal: 04/25/2005 Restructuring(s): 02/11/2015 12/14/2015 Approval: 06/13/2006 Mid-term Review: 05/30/2012 05/26/2012 Closing: 05/31/2014 02/29/2016

C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Moderately Satisfactory Borrower Performance: Satisfactory

C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Satisfactory Performance: Performance:

C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project at Yes Quality at Entry (QEA): None any time (Yes/No): Problem Project at any time Quality of Supervision Yes None (Yes/No): (QSA): DO rating before Satisfactory Closing/Inactive status:

D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) General public administration sector 7 7 Law and justice 37 37 Sub-national government administration 56 56

Theme Code (as % of total Bank financing) Administrative and civil service reform 14 14 Land administration and management 29 29 Legal institutions for a market economy 14 14 Municipal governance and institution building 14 14 Personal and property rights 29 29

E. Bank Staff Positions At ICR At Approval Vice President: Cyril E Muller Shigeo Katsu Country Director: Andras Horvai Kristalina I. Georgieva Practice Manager/Manager: Jorge A. Munoz Marjory-Anne Bromhead Project Team Leader: Juan Navas-Sabater Samir M. Suleymanov ICR Team Leader: Juan Navas-Sabater ICR Primary Author: Daniel Roberge

F. Results Framework Analysis

Project Development Objectives (from Project Appraisal Document) In the PAD, the Project Development Objective (PDO) was formulated in two different ways:

- Main text: "The Project will support on-going reforms of the registration system of rights in immovable property in Russia through improving procedures and the information flow from the registry to users with

ii a development objective to facilitate the development of real property markets, improve the quality of services provided, and strengthen the linkages with other organizations dealing with real property."

- Annex 4 (Detailed Project Description) PDO: The objective of the project is to improve the system of registration of legal rights to immovable property by developing standardized, clear and more efficient registration procedures, and by introducing an improved information management system for the registration offices.

The PDO formulation from Annex 4 was also used in the Loan Agreement (LA) that was signed on Sept. 12, 2007. It is, therefore, used for the purposes of the ICR.

Revised Project Development Objectives (as approved by original approving authority) The PDO was never changed though the language between the PDO in the PAD and the LA was harmonized with the 2010 restructuring. The following PDO was confirmed:

"The objective of the Project is to improve the system of registration of legal rights to immovable property by developing standardized, clear and more efficient registration procedures, and by introducing an improved information management system for the registration offices."

(a) PDO Indicator(s)

Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Reduction of time for registration (first time, sales, inheritance, others) 8 calendar days Value (actual) quantitative or 30 calendar days (legal) 15 calendar days 10 calendar days Qualitative) (legal) Date achieved 05/15/2006 06/14/2006 02/29/2016 Comments Achieved. Registration time was reduced from 30 calendar days to 8 working days: over (incl. % 45% better than the original target value and two days faster than the legal requirement achievement) of 10 days enacted in December 2014. Increased productivity of the united registration staff (average number of registrations Indicator 2 : completed per staff) Value 700 registrations per staff 1,200 registration 1,915 registration per quantitative or per year per staff per year staff per year Qualitative) Date achieved 05/15/2006 06/14/2006 02/29/2016 Comments Achieved and exceeded. Registration staff have almost tripled their productivity and are (incl. % processing 60% more registrations than the original target value. achievement) Indicator 3 : Client satisfaction (individual users, professionals and institutions) Value 80% (baseline plus 90% (baseline quantitative or 60% 95.7% 20%) plus 30%) Qualitative)

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Date achieved 05/15/2006 06/14/2006 08/23/2010 02/29/2016 Comments Achieved. The level of client satisfaction according to the latest customer satisfaction (incl. % survey is 88% whereas the more real-time internet portal feedback shows 95.7% achievement) satisfaction.

(b) Intermediate Outcome Indicator(s)

Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised Target approval Completion or Values documents) Target Years Submission to Government of a set of normative acts for improvements in the unified Indicator 1 : Registration System Value All reports, drafts (quantitative Not Available Submitted Available submitted and or Qualitative) available. Date achieved 05/15/2006 06/14/2006 08/23/2010 02/29/2016 Comments (incl. % Achieved. 25 normative acts were approved during the Project. achievement) Indicator 2 : Number of offices equipped with an e-archiving system Value 164 offices + 2 (quantitative 0 166 archives centers are or Qualitative) utilizing e-archiving Date achieved 05/15/2006 06/14/2006 02/29/2016 Comments Achieved. The Archiving Strategy was approved on September 5, 2015. An Archive (incl. % center was constructed in Kaluga and another is under construction in Kazan. achievement) Increase in the percentage of surveyed population that understands the requirements and Indicator 3 : procedures for registration Value (quantitative 70% 91% 88% or Qualitative) Date achieved 05/15/2006 06/14/2006 11/17/2014 Comments Target mostly achieved in the latest 2014 survey. It is likely to be achieved now that (incl. % registration services are offered through 1,313 local Rosreestr offices, 2,203 Federal achievement) Cadastral Chamber offices and over 2,000 MFCs. Indicator 4 : Reduction in time for processing information requests from individuals Value 1 day for e-extracts (quantitative 7 days 1 day and 3 days for Paper or Qualitative) extracts Date achieved 05/15/2006 06/14/2006 02/29/2016 Comments Achieved for requests submitted electronically through the Portal of Public Services. (incl. % Processing time is 3 days for paper-based extracts. achievement) Technical Capacity to receive and transmit information between Registration and other Indicator 5 : Federal Agencies, including Cadastre Offices

Number, % of Value offices using (quantitative No capacity Capacity Available 100% electronic query or Qualitative) technology Date achieved 05/15/2006 06/14/2006 08/23/2010 02/29/2016 Comments Achieved. 164 offices and 2 archive centers, eight times more than before the Project, are (incl. % now using the interdepartmental electronic application. achievement) Indicator 6 : Increase in information requests Value (quantitative 10 million To be monitored 40.8 million or Qualitative) Date achieved 05/15/2006 08/23/2010 12/31/2015 Comments Exceeded. The number of information request has been multiplied by four compared to (incl. % the baseline. achievement) Indicator 7 : Number of Rosreestr staff trained in using the Single Window Technology (cumulative) Value 1,277 staff trained in (quantitative Not Available To be monitored using the Single or Qualitative) window technology. Date achieved 06/30/2010 08/23/2010 02/29/2016 Comments Achieved. Of the 1,277 trained staff, 64 were trained using Project funds. There were (incl. % also 14 training courses and workshops and study visits were organized. achievement) World Bank Doing Business Registering Property Index ranking on the Ease of Indicator 8 : Registering Property Indicator Value (quantitative 45 Not Available 8 or Qualitative) Date achieved 12/31/2011 12/31/2011 02/29/2016 Comments Rosreestr has increased its ranking in the Doing Business Registering Property Index by (incl. % 37 positions since 2011 and now ranks among the top ten countries globally. achievement)

G. Ratings of Project Performance in ISRs

Date ISR Actual Disbursements No. DO IP Archived (USD millions) 1 07/20/2006 Satisfactory Satisfactory 0.00 2 12/26/2007 Satisfactory Satisfactory 0.00 3 06/26/2008 Satisfactory Satisfactory 0.00 4 01/23/2009 Moderately Satisfactory Moderately Satisfactory 0.00 5 06/30/2009 Moderately Satisfactory Moderately Satisfactory 0.00 6 10/15/2009 Moderately Satisfactory Unsatisfactory 0.00 7 01/24/2010 Moderately Satisfactory Unsatisfactory 0.30 8 11/06/2010 Moderately Satisfactory Unsatisfactory 0.59 9 06/26/2011 Moderately Satisfactory Moderately Unsatisfactory 0.94

10 02/05/2012 Moderately Satisfactory Moderately Satisfactory 3.70 11 06/27/2012 Moderately Satisfactory Moderately Satisfactory 4.63 12 12/26/2012 Moderately Unsatisfactory Moderately Unsatisfactory 7.72 13 06/24/2013 Moderately Unsatisfactory Moderately Unsatisfactory 9.48 14 12/28/2013 Moderately Unsatisfactory Moderately Unsatisfactory 10.93 15 06/25/2014 Moderately Satisfactory Moderately Satisfactory 13.07 16 12/22/2014 Satisfactory Satisfactory 17.69 17 06/10/2015 Satisfactory Satisfactory 23.60 18 12/10/2015 Satisfactory Satisfactory 24.37

H. Restructuring (if any)

ISR Ratings at Amount Board Restructuring Restructuring Disbursed at Reason for Restructuring & Key Approved PDO Date(s) Restructuring Changes Made Change DO IP in USD millions This restructuring: 1) addressed the institutional changes in the responsible agency after three federal services were united under the Presidential Decree No. 1847 of December 2008 to become the 08/23/2010 N MS U 0.41 Federal Service for State Registration, Cadastre and Cartography, “Rosreestr”, and 2) aligned the language of the PDO in the PAD with the PDO in the Loan Agreement. This restructuring: extended the Project closing date by 9 months from May 31, 2014 to February 28, 2015. The extension was requested to complete procurement procedures and contract implementation for packages that were at an advanced state of procurement but whose execution could not be completed by the 05/28/2014 N MU MU 13.07 original closing date. US$ 17.8 million was also cancelled from the loan, including unallocated savings from contracts with amounts that were lower than those estimated in the procurement plan The cancellation was requested because Rosreestr used other financing sources and efficiency gains from previous technical innovations to

ISR Ratings at Amount Board Restructuring Restructuring Disbursed at Reason for Restructuring & Key Approved PDO Date(s) Restructuring Changes Made Change DO IP in USD millions achieve its system development objectives. A new final disbursement estimate of US$ 32.2 million was also established. This restructuring extended the Project closing date by twelve months from February 28, 2015 to February 29, 2016. The extension allowed ongoing activities to be fully implemented and took advantage of savings under recent tenders to implement additional activities aimed at further 02/11/2015 N S S 17.69 enhancing the Project outcomes and achievements of the PDO. These additional activities were financed through an unallocated balance of nearly US$ 4 million, which accumulated through savings generated by strong competition among suppliers in the bidding processes for several IT packages. This restructuring responded to the Government request to an increase in the Designated Account ceiling of up to US$ 6.4 million to meet all the cash requirements under the Project included in the 2015 12/14/2015 N S S 26.98 Federal Budget. This change was reflected in both the Loan Agreement and in the Disbursement Letter because the original Loan Agreement stipulated a ceiling of only US$ 2 million.

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I. Disbursement Profile

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1. Project Context, Development Objectives and Design

1.1 Context at Appraisal

1. Country Context. During the 1990s and early 2000s, fundamental economic changes took place in the Russian Federation, but the real estate market remained under-developed and inefficient and the mortgage market was non-existent. This was primarily caused by the lack of clarity on land ownership in addition to complicated and costly procedures associated with real estate transactions. The inefficiency of the real estate registration system deprived the population from tapping into the full benefits of their property, which affected economic growth, social stability and government revenue. The lack of effective information flows between the two systems of registration of rights and the land cadastre (physical identification and description of property) complicated the process of registration and contributed to high transaction costs.

2. From 1995 to 2003, the Russian Federation, with financial and technical support from the World Bank and other donors, began work on the improvement of the property system, namely through the Bank- financed Land Reform Implementation Support (LARIS) Project (P034579-IBRD 3756-RU). In 2004, legal and administrative reforms were initiated by the Government to improve the efficiency of property registration and to establish an automated, unified registration system that would improve the use of property, improve market efficiency, and stimulate property-related investment.1 The initial concept was to develop a project to: 1) support both cadastre and registration service improvements, and 2) integrate these services to improve efficiency and effectiveness through the simplification of procedures for the clients.

3. Several significant changes were made to the laws on property registration including: 1) moving regional registration services under Federal administration and introduce standard procedures across the country; 2) switching to budget financing, following a broader Government principle of moving all State- provided services to budget financing; and 3) entrusting the responsibility of the registration of property rights to the newly-created Federal Registration Service (FRS) within the Ministry of Justice. With 50 different registration systems in use in 77 regions, FRS faced a tremendous challenge to establish a functioning, unified registration system for the country in a short period of time. There were neither standard procedures nor legal frameworks, and the human capacity of the new agency needed to be considerably strengthened to build a service-oriented organization. The FRS also needed to digitize olds records that existed only as hard copies. Moreover, the then newly-created FRS was under pressure to deal with 15 million registration transactions, an expected increase of at least 30% since the previous year. Offices were burdened by long queues of clients waiting to register transactions. This was a major issue because improvements in the quality of public services had been reiterated in President Putin’s 2005 annual address to the nation as a high priority for the Government.

4. Unfortunately, cadastre and registration services remained under two distinct authorities: cadastral services were managed by the Federal Agency for Cadastre of Immoveable Property (FCA), which was part of the Ministry of Economic Development and Trade (MED), and property registration services were managed by the Federal Registration Service (FRS), which was under the Ministry of Justice (MOJ). At that time, the Government was not ready to take action on merging these two agencies. Moreover, the FCA was ready to move on with the Project whereas the FRS was not. Under these circumstances it was decided to prepare two projects: the Cadastre Development Project (P078420-IBRD-48000) which was a US$ 100 million loan approved on July 5, 2005, and the Registration Project (P093050-IBRD-4826-RU) which was

1 The Federal Targeted Program 2006-2011.

1 a US$ 50 million loan approved on July 13, 2006 (the “Project”). The FCA and the FRS were integrated during Project implementation, together with the Cartography and Geodesy agency following the Presidential Decree No. 1847 of December 25, 2008, which called for institutional reform and the merger of these agencies into a unified agency called Rosreestr.

5. This institutional reform was crucial for the long-term sustainability of the sector and in line with international best practice and Bank recommendations. The Project ended up becoming a part of the wider Government reform Program, particularly the Russian Federation’s e-Government Strategy2 and Roadmap (2013-2018) for the improvement of the quality of Government services for real estate registration and transactions. 3 The Government commitment to the Project increased and the Project benefitted from counterpart funding, which doubled the amount of financing for the Project.

6. Government Strategy. The Government had been actively engaged in the property registration and market development for many years, including the LARIS Project. The Government had adopted a program for legislative and administrative reforms that was consistent with the best practice. The Government remained committed to continue engagement with the Bank on land management issues. This was demonstrated by the creation of Rosreestr and the allocation of significant counterpart funds to help the Project as it contributed to the Government’s wider reform program.

Rationale for Bank Involvement.

7. In this context the Project was designed to support the process of reorganization of a new property registration system in the country. The FRS and the Government needed advice on international best practices, such as the appropriate legal framework; institutional reforms, procedures, and business processes; training and public outreach; and the establishment of a unified IT system to improve the efficiency of the service. The Bank had a well-established track record in the areas of registration of rights and cadastre in many of the former Soviet countries, and could readily contribute to improving property registration in Russia. Moreover, the Bank was already engaged in the Cadastre Development Project. Therefore, the Bank’s involvement in both projects grew organically to ensure coordination and consistency between the cadastre and property registration systems.

8. The Project directly addressed two of the three priority areas included in the Country Assistance Strategy (FY03-07): 1) strengthening public sector management and improving the business environment; and 2) enhancing competition, particularly through the protection of property rights and greater access to information. The Project was also consistent with the Country Partnership Strategy (FY08-11), which addressed two of the four pillars: 1) improving the efficiency of Federal budgetary expenditures; and 2) supporting regional development.

1.2 Original Project Development Objectives (PDO) and Key Indicators

9. In the PAD, the Project Development Objective (PDO) was formulated in two different ways:

 Main text: “The Project will support on-going reforms of the registration system of rights in immovable property in Russia through improving procedures and the information flow from the registry to users

2 Plan of Transition to Public e-Services and the Electronic Performance of Public Functions by Federal Authorities, approved by the Directive of the Russian Federation Government, N: 1555p/October 17, 2009. 3 For details see: https://rosreestr.ru/site/activity/plan-meropriyatiy-dorozhnaya-karta-povyshenie-kachestva-gosudarstvennykh-uslug-v-sfere- gosudarstvenn/

with a development objective to facilitate the development of real property markets, improve the quality of services provided, and strengthen the linkages with other organizations dealing with real property.”  Annex 4 (Detailed Project Description): The objective of the project is to improve the system of registration of legal rights to immovable property by developing standardized, clear and more efficient registration procedures, and by introducing an improved information management system for the registration offices.

10. The PDO formulation from Annex 4 was also used in the Loan Agreement (LA) that was signed on Sept. 12, 2007. It is, therefore, used for the purposes of the ICR.

11. This inconsistency in the language of the PDO in the PAD and the LA was officially corrected in the restructuring (August 23, 2010), in which it was mentioned that the PDO “will change to align the PDO in the PAD with the PDO in the LA”. The final PDO wording was as follows:

“The objective of the Project is to improve the system of registration of legal rights to immovable property by developing standardized, clear and more efficient registration procedures, and by introducing an improved information management system for the registration offices.”

12. To achieve this objective, the Project was to (i) improve the functioning of the offices of the Registration Service by upgrading operational and normative procedures and improving service delivery to clients; (ii) develop an efficient software application for registration and information transfer to convert existing data into the new system and to ensure that the system is operational in all regions involved in the Project; (iii) improve professional skills of registration service staff; (iv) finance the work of a Project Implementation Unit (PIU) to manage the financial accounting, reporting and procurement activity under the Project.

13. The PDO indicators4 listed in the PAD were:  Quantity of economic transfers of immoveable property (sales, lease)  Quantity of mortgages registered  Capacity to improve information to clients irrespective of the place of submission of the application and the location of the object

1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification

14. The PDO was never changed though the language between the PDO in the PAD and the LA was harmonized with the 2010 restructuring.

15. With the August 2010 restructuring, the three original PDO indicators were dropped and replaced with three new PDO indicators:  PDO Indicator 1: Reduction of time for registration (first time, sales, inheritance, others)  PDO Indicator 2: Increased productivity of the unified registration staff5  PDO Indicator 3: Client satisfaction (individual users, professionals and institutions)

16. This change in PDO indicators was done to move away from indicators that relied heavily on land market activity in Russia and move towards indicators that more accurately reflect the achievement of

4 Note: the PAD made another reference to key indicators on Page 4 but these were not the PDO indicators. 5 Staff directly involved in the registration process only.

Project activities. The new PDO indicators were also in line with standard PDO indicators that had been introduced for land projects by 2010, particularly the need to measure customer satisfaction.

1.4 Main Beneficiaries

17. The PAD stated that the Project was expected to benefit the general public and the business community in all regions and sectors as a result of improved registration processes. This was indeed achieved as all citizens now have access to efficient and affordable registration services. The privatization program following the collapse of the Soviet Union led to ownership but these rights were not always registered, making the general population vulnerable. Therefore, the Project has helped citizens, particularly those in rural areas who can now register their land and use it as collateral to gain access to finance through mortgage and small business loans. Moreover, there were other beneficiaries such as cadastre and real estate professionals such as land surveyors, notaries and lawyers, and those wanting to make use of information relating to real property, including real estate professionals and investors, municipalities, commercial banks, etc.

18. Initially, the Project targeted a specific geographical area covering 25 of the 77 Territorial Registration Offices of the Registration Service. Early in the Project, this geographical focus was dropped as the initial activities related to office refurbishing and construction of some offices were excluded from the Project scope. Therefore, the remaining activities were no longer confined to a particular geographical location but instead were beneficial to the entire country.

1.5 Original Components (as approved)

19. The original Project included four components:

 Component A. Institutional Development The objective of the institutional development component was to improve the quality of registration services to the public, improve the physical facilities of offices and to monitor the effectiveness of the project through monitoring the impact of the improved customer services. The component had five subcomponents: 1) improvement to the legislative framework; 2) client services development; 3) dissemination of registration service Information to the general public; 4) project monitoring; and 5) document storage system.

 Component B. Information and Communications Systems The objective of the ICT component was to design and implement an efficient and secure distributed information system6 , including a unified software application for the registration of rights and a telecommunications subsystem for information access and exchange. In addition, this component was to support migration of existing data from different formats into the new unified system and ensure the system was operational in all Subjects of Federation (SOFs) involved in the project.

 Component C. Improvement of the professional skills of registration service staff The objective of this component was to ensure that all staff of the registration agency were provided with sufficient information and training to carry out their tasks in the new system. Although training was to be concentrated on those SOFs involved in the project, other regions were included in the training programs as appropriate.

6 A set of information systems physically distributed over several sites connected by a communication network.

 Component D. Project Management The objective of this component was to provide adequate logistical and management support for implementing the Project.

1.6 Revised Components

20. The components were not revised during the Project. Some intermediate indicators were dropped and new ones were added with the August 2010 restructuring.

1.7 Other significant changes

21. In December 2008, under the Presidential Decree No. 1847, the Government unified FCA, FRS, and the Cartography and Geodesy Agency to create Rosreestr under the MED. The merger was in line with the Project’s PDO “to improve the system of registration of legal rights to immovable property by developing standardized, clear and more efficient registration procedures” and in line with international best practices as well as Bank recommendations.7

22. Following this decision, the organizational structure was changed and Rosreestr’s management team had to reorganize 6,000 offices and 46,000 staff members. This major change caused severe delays in the beginning of the Project.

23. There were a total of four Project restructurings, including two Project extensions for a cumulative period of 21 months. These changes are described below:  In August 2010, a Level 1 restructuring was approved in order to: 1) address the institutional changes in the responsible agency after three federal services were unified to become the Rosreestr and 2) align the PDO in the PAD with the PDO in the Loan Agreement, as discussed above. PDO indicators were changed to reflect: 1) the reduction in time for different types of registration; 2) registration staff productivity; and 3) customer satisfaction. The creation of Rosreestr did not change the implementation or institutional arrangements of the Project and the Project Implementation Unit (PIU) remained the same. The disbursement schedule and procurement plan were revised to reflect the delays in implementation. The Project’s mid-term review was also postponed by two years.

7 The Presidential Decree was followed by an Order of the Minister of Economic Development to create "a unified federal system in the area of registration of property rights and cadastral registration, plan of drafting regulatory and legal acts underpinning a unified federal system in the area of registration of property right and cadastre registration, and plan of actions aimed at creating a unified federal system in the area of registration of property rights and cadastral registration.” After the establishment of Rosreestr in 2009, the Russian Federation Government allocated 23,005.6 million rubles (USD 750.76 million based on the weighted average exchange rate of 30.643 Russian rubles per US dollar for the 2009-2012 period) to support reforms in property registration under the Subprogram “Establishment of Immovable Property Cadastre (2006- 2012)” of the Federal Targeted Program (FTP). “Establishment of Automated System for Maintaining the State Land Cadastre and State Recording of Immovable Property Objects (2002-2008)” approved by Government Resolution # 560 dated September 13, 2005. In addition, recognizing the importance of land and property relations in supporting socio-economic development, boosting living standards and promoting regional development, and in order to continue the reforms in the area of property registration, the RF Government approved the FTP “Development of a United System for Title and Cadastre Registration of Immovable Property (2014 - 2019)”. During the Project implementation the new FTP spent 4,495.61 million rubles (USD 90.47 million based on the weighted average exchange rate of 49.69 Russian rubles per US dollar for the 2014-2015 period) to support the development of the registration system, including 183.86 million rubles (USD 15.11 million) spent by the Ministry of Communications to develop software and hardware for e-records-keeping. Overall, 42,536.73 million rubles (USD 585.25 million based on the exchange rate forecast of 65 Russian rubles per US dollar for the 2016-2019 period) will have been spent to support the reforms in the area of recording and registration under the FTP.

 In May 2014, a Level 2 restructuring extended the Project closing date by nine months from May 31, 2014 to February 28, 2015. The extension was requested to complete procurement procedures and contract implementation for packages that had reached an advanced state of procurement but whose execution could not be completed by the original closing date. The extension was also needed to complete data processing centers and for the introduction of the unified recording and registration procedures. Additionally, a US$17.8 million loan was cancelled from loan IBRD-4826-RU. The cancellation was requested because Rosreestr used other financing sources and efficiency gains from previous technical innovations to achieve Project objectives. A new final disbursement estimate of US$32.2 million was also created.  In February 2015, another Level 2 restructuring extended the Project closing date by twelve months from February 28, 2015 to February 29, 2016. The extension allowed on-going activities to be fully implemented and took advantage of savings under recent tenders to implement additional activities aimed at further enhancing the project outcomes and achievements of the PDO, such as consultancy to evaluate the institutional impact of the Project. These additional activities were financed through an unallocated balance of nearly US$4 million, which accumulated through savings generated by strong competition among suppliers in the bidding processes for several IT packages.  In December 2015, a final Level 2 restructuring was approved after the Government requested an increase in the Designated Account ceiling of up to US$6.4 million to meet all the cash requirements under the Project included in the 2015 Federal Budget. This change was reflected in both the Loan Agreement, through a change in Paragraph 1(b) of Schedule 6, and in the Disbursement Letter because the original Loan Agreement stipulated a ceiling of only US$2 million. The Government counter-signed the letter amending the Loan agreement.

2. Key Factors Affecting Implementation and Outcomes

2.1 Project Preparation, Design and Quality at Entry

Soundness of the background analysis:

24. Project preparation benefited from the experience gained from the LARIS Project, which was successfully completed in 2003, and had provided infrastructure, mapping data and training to support land administration, and good understanding of the property registration business environment and customers’ needs. The Russian Federation had a high level of technical expertise and knowledge of land administration. On the Bank side, several of the team members had long and substantial experience in land administration projects in the Russian Federation and its neighboring countries. The combination of Bank and Rosreestr expertise was very beneficial for Project preparation and design. This resulted in a relatively standard but strong Project design focusing on institutional development (improving laws and operations), registration system improvement, capacity building and project management.

Assessment of Project Design:

25. Project design was informed by the land administration international best practice of unifying cadastre and registration services under a single agency. This was aligned with the initial idea of that the project would cover both cadastre and registration services. However, the Project was designed the FCA and FRS were still two separate agencies. The complexity of integrating the two agencies only through the Project and without a Government decision led the Government and the Bank to agree to split the initial unified project idea into two separate projects and proceed with supporting the Cadastre Development Project, which was in an advanced stage of preparation, while the issues delaying decisions on the registration service were being resolved.

26. This Project benefitted from the Cadastre Development Project: significant work had been completed and relevant capacity had been built and these proved to be useful later when the Government decided to merge the agencies. The Project also built on the IT systems developed under the Cadastre Development Project, enabling the Project to add a subsequent layer to the system in relation to the ownership of rights and transactions. This sequence of reforms—start with the cadastre and then move on to the registry of rights—was also strategic.

27. The PDO, despite the different wording in the PAD’s main text, was clearly formulated in the Annex 4 and LA8, and remained consistent with the Borrower’s priorities until the Project’s closing. The initial PDO indicators were reflected the standard practice to track the progress of the Bank’s registration projects. However, during the 2010 restructuring, the PDO indicators that relied heavily on land market activity were replaced with indicators that more accurately reflected the achievement of Project activities.

Adequacy of Government Commitment:

28. The Government was actively engaged in the development of real property administration and market development for many years, including through the LARIS and Cadastre Development projects. The Government had adopted a clear program for legal and administrative changes in 2004 and the Presidential Decree in 2008, thereby establishing Rosreestr according to international best practice. The Government team’s skills and knowledge in the preparation and design phases of the Project helped produce an ambitious but realistic Project aligned with Government strategy and Bank’s engagement in the country. The allocation of significant counterpart funding to this Project further demonstrated Government commitment and the role this Project played in the wider Government reform program.

Risks

29. The PAD assessed the overall Project risk as moderate with two elements classified as substantial: one related to implementation delays, which were common for Bank projects in Russia, especially those requiring inter-ministerial coordination, and the second one related to institutional capacity to improve the efficiency of the registration services and introduce new business procedures.

30. After the turmoil that followed the creation of Rosreestr with substantial implementation delays, inter- ministerial coordination was no longer an issue because the main institutions involved became parts of Rosreestr. The strengthening of the implementing agency, combined with the Government’s emphasis on improving registration services, became the best way to mitigate these risks.

31. It should also be noted that the merger was not known at the time of Project preparation so it could not have been foreseen or accounted for in the risks. Therefore, at the time of preparation all risks were adequately identified and strong mitigation measures were put in place to address them.

2.2 Implementation

Institutional Arrangements

32. After the official merger of the agencies into Rosreestr, there was some consideration given to the possibility of merging the two projects, but this was deemed unfeasible due to two reasons. First, the two

8 The discrepancy between the PAD and LA formulation was corrected in 2010 restructuring and confirmed the LA wording.

7 projects were to be led by different parts of Rosreestr, which even after the merger would maintain a certain level of autonomy. Second, the Cadastre Project was already at an advanced stage of implementation whereas this Project was just beginning. Despite the decision to keep the two projects separate, Project effectiveness, implementation, procurement, and disbursements were delayed due to the ongoing institutional reform.

33. Thus early days of Project implementation focused on supporting the integration of the three Government agencies in terms of office co-location, investments in hardware and archival systems, and bringing together some 6,000 offices and 46,000 staff. At the same time, the two existing Bank-financed land sector projects were restructured to bring them under Rosreestr and to support a unified program.

34. The low level of disbursements at the beginning of the Project was due to the decision to create Rosreestr. This triggered major institutional adjustments with new objectives and goals to combine the functions of the registration of rights and cadastre, and to develop a unified registration system based on an integrated, national IT system. This institutional reorganization meant that almost no funds were disbursed during the first four years of the project, and that new IT strategies and equipment needed to be defined for the reorganized institution. The severe delays in disbursement sparked some discussions around canceling the loan, but given that the merger guaranteed the long-term sustainability of the sector, the Bank decided to be more patient and wait for the new institutional arrangements to be put in place before Project activities began to be implemented.

35. At the same time, the creation of the single agency is a significant achievement of the Bank’s engagement in the land and property sector in Russia and important for improving Project implementation and guaranteeing the sustainability of Project outcomes. Despite these initial delays, the merger proved to be beneficial for the Project and a key success factor for the Bank’s engagement in the land sector in Russia.

Development Objectives

36. The main conclusion of the Mid-Term Review (May 26 to June 3, 2012) was that the Project was being implemented successfully in all components, and was on its way to achieving all of its development objectives despite the fact that only a small portion of the loan had been used. The main reason for this was that Bank funds formed only a small percentage of the overall costs of setting up the whole institutional system, estimated by Rosreestr to be ten times the loan amount. The Project funds were needed for equipment, hardware and archive furniture but preliminary work was required for a regulatory environment, training and software development. This was funded by the Government from its reform program budget. The period of institutional transition had meant that the launch of most Project activities did not begin until 2010 when the focus of the project shifted from emphasizing and financing the linkages between cadastre and registration to unification of data, systems and procedures, including the legal transformations that were required under the unified agency.

Real Estate Registration

37. At the time of the Mid-Term Review, achievement of the PDO and overall implementation progress were both rated Moderately Satisfactory. Online registration and cadastre information were publicly available to all. E-services represented 22% of the overall services provided, e-signatures had been introduced, and digitally signed extracts could be obtained online in one day. The time for registering secondary transactions was continuously decreasing. System interoperability with various Government and municipal systems had been implemented through the Interdepartmental Electronic Interaction System (SMEV) and the clients were no longer requested to provide documents issued by other Government agencies, including those issued by the municipal authorities.

38. Help desks and call centers were fully operational and continuing to expand. The legislative development updated the legal framework primarily with a single draft law on a unified registration and cadastre system, with single procedures, that adopted e-services as one of its bases. A substantial amount of training of Rosreestr staff had been completed under the Project.

39. In parallel to Project implementation but not financed by it, the Geoportal was created using a single coordinate system that allows users to access spatial information about all land plots registered in the system as well as buildings and constructions.

40. The only major activity that was significantly delayed was the strategy and implementation of Rosreestr’s archives because further analysis of the timing, costs and approach for archiving needed to be developed. The emphasis on electronic archiving was a change made in the restructuring paper of June 2010. The unified archive centers’ introduction depended on the unified information system implementation, the completion of the digital archive strategy, and the establishment of national standards for digital archives to ensure information sharing between various government and municipal authorities.

2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization

Design

41. As previously mentioned, with the 2010 restructuring, the original PDO level indicators were revised to capture system efficiencies and be more resistant to land market fluctuations. Otherwise, the results framework in Annex 3 to the PAD provided a set of clear, measurable and specific indicators covering activities under each component, and the PAD clearly described data collection and reporting methodology, primarily through the Information of the Registration Service.

Implementation

42. FRS and then Rosreestr did not monitor the result indicators in the early stages. In fact, the monitoring system needed to be reviewed and integrated into one single system at the Federal level and an assessment of the indicators (quantitative and qualitative), including the first client satisfaction survey that was delivered in 2011, needed to be completed. Thereafter, Rosreestr developed good M&E capacity on Project activities. The second customer satisfaction survey was conducted in 2014. The client satisfaction was then monitored through the data provided by web portal “Vash Control” (your control). The M&E provided detailed information on what was being achieved under the Project and proved to be a very useful tool to support decision making.

Utilization

43. With respect to utilization, M&E was mainstreamed into the Rosreestr’s reporting system, which remains in place and continues to provide data. This means that Rosreestr has a robust system in place to continue to monitor market and operational indicators for internal work. During Project implementation, the M&E system was regularly used to monitor and report Project progress and take corrective action where needed. Client surveys of the type sponsored by the Project are likely to be continued in the future.

44. By the Project’s end, there was greater acceptance of the client survey approach to monitoring and there appears to have been a cultural change within Rosreestr where client service and feedback have become an essential part of business. Monitoring of indicators on registration services and client satisfaction are very likely to be continued in the future.

2.4 Safeguards and Fiduciary Compliance

Safeguards/Environment

45. At the time of Appraisal, the Project was categorized as a Category “B.” This was because Component 1 included the establishment of new archive centers by remodeling five buildings. These activities were expected to generate minor environmental impact, triggering WB OP/BP 4.01 on Environmental Assessment. To address them, a simple generic Environmental Management Plan for “civil works” was prepared, consulted with all interested parties, and disclosed in the country and WB Infoshop.

46. During the project restructuring the Bank and Rosreestr agreed on excluding financial support design and establishing archive centers as well as other civil works. This was reflected in the Bank’s aides-memoire from November 2013 and May 2014 and in the revised Procurement Plans. Thus, no civil works under the project were implemented, and respectively, the project did not generate any direct environmental and/or social impacts.

47. At the same time, the Project has already provided and will continue to provide significant positive environmental impacts by reducing greenhouse gas emissions thanks to the implementation of e-services, which will significantly reduce the use of vehicles and the use of paper by transitioning to electronic documents. While it is difficult to estimate the monetary value of this benefit, the emissions reduction would be considerable for an organization like Rosreestr in the world’s largest country by land area.

Financial Management

48. The Project had satisfactory financial management (FM) arrangements throughout its life. The FM system included planning and budgeting, accounting and reporting, internal control procedures and external audits. The FER9 FM department was adequately staffed and managed. Quarterly financial reports were submitted to the Bank on a timely basis and with good quality. Project audit reports, together with management letters, were submitted to the Bank by the due date and have clean, unmodified opinions, with no issues raised by auditors in the management letter. The project FM arrangements have been supervised periodically by the Bank FM Specialist assigned to the country.

Procurement.

49. The procurement activities under the Project were satisfactory overall, thanks to a highly qualified and experienced PIU. After a slow start and the 2010 restructuring, the Project finally gained momentum and delivered its expected outcomes through many contracts that were handled very well.

50. Nevertheless, some difficulties emerged in arranging the competitive selection of bids for some large contracts. Due to the sophistication of procured software and hardware and given the need to amend and specify tender documentation, deadlines for the bids submission moved several times which affected the expected implementation schedule for such packages. Additionally, major changes in the implementation schedule for some other contracts were caused by bid evaluation outcomes that triggered an intense discussion between the Rosreestr and the Bank experts on bid evaluation criteria. Despite some of these challenges, procurement procedures always took place in accordance with Bank policies.

9 FER is the Foundation for Enterprise Restructuring and Financial Institutions Development that was established in 1996 by the Government of the Russian Federation to ensure effective implementation of complex interagency projects financed from the funds provided by international finance organizations.

51. It is worth mentioning that Rosreestr staff were trained with Project funds, in global best practices on procurement and financial reporting, as well as on project management and project monitoring and evaluation. This training was very positive for the Project as it increased PIU’s capacity to effectively deal with procurement and FM matters.

2.5 Post-completion Operation/Next Phase

52. With respect to the next phase, Rosreestr has developed a concept note for a new Bank project that would support the development of National Spatial Data Infrastructure. The Bank is currently financing next generation land administration solutions in the Europe and Central Asia region, and the Global Land and Geospatial team would be open to exploring continued collaboration with Rosreestr.

3. Assessment of Outcomes

3.1 Relevance of Objectives, Design and Implementation

53. Improving land administration through a reliable, efficient cadastre and registration system has been a high priority for the Government throughout implementation and remains so at completion. The CPS (FY07-FY11) was built on four pillars: sustaining rapid growth; improving public sector management and performance; improving the delivery of social and communal services; and enhancing Russia’s global role. As part of the wider Government reform program, the Project made significant contributions to developing the IT infrastructure that reflected the simplification of registration procedures and made the overall process highly efficient. In this way, the Project provided firm support for sustained economic growth through improved registration services, standardized, clear and more efficient registration procedures, and introduced an improved registration system accessible throughout the country and serves as a best-in-class example for south-south knowledge exchange by hosting agencies from other Bank-financed projects.10 The Project also made significant investments in human capital training which will cement the sustainability of the results and outcomes achieved over the Project period. The Project built on the priorities identified in the Russia CPS FY12-16 for unlocking the dynamic growth potential of the Russian economy.

54. The Project design was based on the Bank’s extensive experience in land registration projects in the ECA region. The design focused on a set of high-impact activities, which together with the work accomplished under the Cadastre Project, could unlock the potential of property markets in Russia. Some shortcomings in the initial choice of indicators came to light early on in Project implementation. As part of the August 2010 restructuring, the original PDO indicators (number of sales and mortgages) were changed to strengthen attribution of Project activities to the overall development objective. The original PDO indicators were also highly dependent on the overall economic performance and, therefore, did not entirely reflect the progress made through Project activities.11 The new PDO indicators, which were previously tracked as intermediate indicators, more accurately captured the Project’s activities and outcomes.

3.2 Achievement of Project Development Objectives

10 For example, study visits to Rosreestr were organized for implementing agencies under the Azerbaijan Real Estate Registration Project (P100582), Serbia Real Estate Management Project, (P147050), and Tajikistan Land Registration and Cadastre Project (P089566). 11 In the aftermath of the Global Financial Crisis, which started in the USA in 2008 and spread to other parts of the world, indicators linked to the overall health of the property markets (e.g. number of sales and mortgages) began to perform poorly despite good progress on Bank-financed land projects. As a result, some land projects were restructured to drop market-sensitive indicators in favor of those that more accurately reflected project progress and achievement of development outcomes. This was an important lesson learned and has been followed while designing appropriate indicators for subsequent land projects.

55. The Project fully achieved its PDO, exceeding its targets, and contributed heavily towards improving the system of registration of legal rights to property by developing standardized, clear and more efficient registration procedures, and by introducing an improved information management system for the registration offices. Even though the financing provided under the Project was small compared to the overall funding available in the wider Government reform program, the Project focused on investments in IT systems, standards, and processes at Rosreestr. In this way, the Project leveraged Bank and FAO expertise to develop a world-class system that improved the efficiency of the property markets in the country. For example, the Project played an important role in reducing the time for registration by 73% from 30 days in 201012 to 8 days at Project close against a target of 10 days. The Project also contributed to greater efficiency as measured by the number of registrations per staff per year, which increased 174% from 700 registrations per staff member in 2010 to 1,915 registrations per staff member at Project close, exceeding the target of 1,200 per staff member. At the same time, client satisfaction increased from 60% in 2010 and exceeded the Project target of 90% to reach 95.7% by Project close.

Standardized, clear and more efficient registration procedures

56. Several registration procedures have been improved under the Project. The most noteworthy changes are:

 Development of the regulatory framework to legally accept and utilize electronic archiving, accept applications, and provide information on registration electronically. This reduced the time for responses to minutes, instead of days, with no need for office visits;  All cadastre and registration offices now offer e-services for both cadastre and registration services;  Development of a nationwide system for performance measurements to benchmark the operations and effectiveness of Russia’s territorial offices, with the objective of: 1) improving knowledge and understanding of service speed and quality; 2) identifying problems and their solutions; and 3) minimizing the potential for corruption through a combination of internal and external consistent monitoring; and  Many laws and regulations were also developed under this Project and were adopted to support the improvement of the registration process. Among these were the Federal Law on the State Registration of Immovable Property, which introduced the unified system approach, e-services and digital documents; and giving registrars clear responsibilities and a statutory compensation system. This legislation, was adopted in July 2015 and is expected to become effective on January 1, 2017. Once effective, the registration time will have to comply with 5-day standard for cadastre registration and 7 days for property rights registration and 10 days for combined service (cadastre and property registration).

Improved information management system

57. The Russian Federation Property Registration System is now the largest land administration system in the world. It contains information on more than 156 million property items (parcels and buildings) and about 169 million titles of any types officially registered. In 2015 alone, some 28 million applications for registration of rights, encumbrances (limitations of real estate rights) and transactions were processed. The share of online requests as a percentage of total requests increased from 0% in 2010 to 49.03% in 2015. In 2009, the issuing of registration extract took several days and required a visit to the local registration office. Since the beginning of 2013, clients can obtain online electronically-signed digital extracts across the entire territory of Russia. Physical information requests are processed within 3 days and those submitted electronically through the Portal of Public Services are processed within one day. Since 2012, clients have

12 Note: Due to implementation delays the baseline was established in 2010.

12 been able to submit electronic applications for cadastre services for the entire territory of the Russian Federation and this became possible in 2015 for the registration services. Any person can subscribe to track changes in the status of his/her property (transfer of rights, arrest, encumbrance, restrictions, etc.). Over 20 million digital extracts were issued in 2015 and services requested online represented about 50% of the total number of applications processed by Rosreestr.

58. The Project and the Cadastre Development Project that preceded it, contributed to raising the awareness of the Russian Federation President and Government on the importance of property registration in supporting sustainable development, increasing living standards, and supporting regional development. This contributed to the establishment of Rosreestr in 2009 and leveraged an investment from the Russian Federation Government of US$585.25 million (of which US$90.47 million went to support the development of the registration system) through the Federal Targeted Program. This Government co- financing can be considered as a very positive impact and a major outcome of the project, representing almost 10 times the amount of money invested directly in this project (combining government and Bank funds).

59. Since October 2011, Rosreestr exchanges information in digital form with 40 federal, regional and municipal authorities through the SMEV13 system though this was not financed by the Bank. Citizens are no longer required to submit to Rosreestr documents issued by other Government or Municipal institutions. In 2015, over 8 million requests were submitted via the interdepartmental electronic system. Multifunctional Centers (MFCs or Governmental one-stop-shops), which provide federal, regional and municipal services using the principle of “Single Window” are widely spread (2,668 MFCs in all subjects of the Russian Federation). Rosreestr services are among the most popular services provided by the Multifunctional centers, where the staff is not under Rosreestr’s responsibility. It is hardly surprising that client satisfaction was over three times higher than the target set for the indicator (95.7% actual achievement as reported by “Vash Control” surveys vs. a target value of 60%).

60. E-conveyancing14 for real estate rights registration became possible in all Rosreestr departments for all services in 2015. Since the beginning of 2015, incoming documents are converted in digital form. Digitization of old records is ongoing and some SOF, like Bashkortostan, have digitized their records completely. A massive conversion of paper documents is planned over the next 5 years, which will speed up the processing time and will contribute to the optimization of number of staff and offices. There is a plan to reduce the number of Rosreestr offices.15

61. Russian Public Cadastral Maps (PCM)/e-Services are very popular and widely used; over 140,000 applications from App Store and over 60,000 applications for Android have been downloaded.

62. The Project directly supported the Rosreestr Information and Communication Technology Strategy, which was part of the e-Government Strategy.16

63. Moreover, service delivery has been greatly simplified since the connection of Rosreestr in October 2011 to SMEV, which enables Rosreestr to exchange information in digital form with all levels of government.

13 https://smev.gosuslugi.ru/ 14 The electronic transaction is the electronic transfer of legal title of property from one person to another, or the granting of an encumbrance such as a mortgage or a lien. 15 By the end of 2016, all offices of Rosreestr which accept and deliver documents will be closed; only offices of the Cadastre Chamber and the Multifunctional Centers will be performing this function. 16 Plan of Transition to Public e-Services and the Electronic Performance of Public Functions by Federal Authorities, approved by the Directive of the Russian Federation Government, N: 1555p/October 17, 2009

64. It is important to note that even though the Project enjoyed a great deal of counterpart funding and support through the wider Government Program, the Project focused heavily on IT investments and increasing related capacity at Rosreestr.

65. The achievement of Project outcomes is further endorsed by the World Bank Doing Business rankings. Rosreestr made an impressive improvement in the Doing Business Registering Property Index, from 51st place in 2011 to 12th place in the 2015 and to 8th place in the 2016 rating. Compared to previous years, the 2016 edition includes some important changes as it now assesses not only the performance of property registration systems but also some qualitative elements: reliability, transparency, national coverage and dispute resolution. In the Russian Federation, this index is monitored with scrutiny at the highest level of the Government.

3.3 Efficiency

66. Overall, the Project was an efficient operation after the initial delays caused by institutional reforms.

67. During the effective period of the Project (2008-2016):  The time for registration improved constantly during the Project. From a baseline of 30 days, it is now at 8 days on average, less than the 10 days required by law and less than the project target of 15 days. In some cases, the registration time is even less than one day.  The productivity of the unified registration staff increased significantly, from a baseline of 700 registrations per staff to 1,915 currently, way beyond the target of 1,200.  The client satisfaction (individual users, professionals and institutions) increased form 60% in 2005 to more than 95% in at the end of the project, way above the project target of 78%.

68. Combined with the implementation of more than 2,600 MFCs across the Russian Federation, in which property registration is one of the most popular services provided, this has helped to increase client satisfaction.

69. The Project efficiency is further demonstrated by the Net Present Value (NPV) and Internal Rate of Return (IRR) analysis presented in Annex 3. These NPV and IRR estimates are driven by Component B of this Project, which accounted for the largest share of the total investments. The two main channels for calculating Project benefits are:  e-governance productivity gains to Rosreestr i.e. the monetary value of time saved. This is calculated by using daily wage estimates and number of days saved; and  e-governance productivity gains to the general public and businesses i.e. the monetary value of time saved. This is calculated using daily wage estimates and an estimated 1 day saved by no longer traveling to submit documents, wait in line, and collect documents.

70. Based on a 5% discount rate and assuming that only 1% of total benefits—time savings in registration for Rosreestr, general public, and businesses—are attributable to the Project, the 10- and 20-year NPV and IRR for the Project and the Bank’s financing share are summarized in the table below. The sensitivity analysis shown in Annex 3 confirms that the NPV and IRR results are robust to changes in the discount rate and the percentage of benefits attributable to the Project.

Summary: NPV and IRR Analysis USD million (unless otherwise mentioned) Project Bank's Share NPV (10 year) 279.2 137.3 NPV (20 year) 336.1 165.3 IRR (10 year) 71.70% 71.70% IRR (20 year) 71.76% 71.76%

3.4 Justification of Overall Outcome Rating Rating: Satisfactory

71. As discussed, the development rationale for the Project remained relevant throughout implementation and continues to be relevant for the Government’s reform program and under the CPS FY12-16.17 The Project also succeeded in meeting all and exceeding several of its targets. The Project helped improve substantially the legal and regulatory framework and supported the design, the development and the implementation of a modernized registration system providing more efficient and client-oriented services across the country. So, despite delayed effectiveness, this Project, along with the combined funding from the Bank and the Russian government (directly and indirectly through the FTP), has achieved impressive progress in property registration across the Russian Federation, way beyond the PDO. Russia is now considered one of the best practice examples and Rosreestr is planning to host several study visits for other Bank-financed land projects. The Project also demonstrated a high efficiency in the use of its resources to achieve its outcomes and deliver long-lasting, sustainable results to the land and property sector in Russia. Based on these factors, the Project is rated as Satisfactory. It is worth noting that in the absence of substantial delays that affected effectiveness, the Project may even have achieved a “highly satisfactory” rating based on the relevance, efficacy and efficiency of its results.

72. In case of Bank projects where a restructuring affects the PDO or PDO indicators, the Bank bases the project outcome rating on the disbursement-weighted project performance up to and after the restructuring where such a change was made. In this Project, the April 2013 restructuring revised certain PDO indicators. The Project outcome up to August 2010 was rated as Moderately Satisfactory18 and only 1.3% of the loan had been disbursed. As discussed above, the Project outcome at the end of the Project was rated as Satisfactory with the remaining 98.7% of the loan being disbursed after the restructuring. As shown in the table below, these ratings are translated to a 6-point scale: 4 for Moderately Satisfactory and 5 for Satisfactory. Weighted by the disbursements up to and after the restructuring of 1.3% and 98.7%, the methodology results in weighted scores of 0.05 and 4.94. Together, this amounts to 4.99, which is rounded up to 5 i.e. a Satisfactory outcome.

Original PDO Definition Original PDO Definition + Original KPIs + Revised KPIs Rating Moderately Satisfactory Satisfactory Point score (i) 4 5

17 The CPS includes continued support for the Government’s efforts to provide public services more efficiently, more citizen/business orientation to contribute to business confidence and citizen satisfaction in an environment of fiscal restraint, and to expand at the federal, regional, and local levels new service delivery modalities, including the use of e-governance applications, the use of service standards, administrative complaints procedures, and client feedback mechanisms. Such initiatives should target important development constraints, such as the time required to complete land registration and issuance of construction permits and business licenses. Property registration remains a key issue for unlocking the dynamic growth potential of the Russian economy. Exposure of responsible government staff to international best practice is essential for nurturing domestic progress." As a result, the overall relevance is considered substantial. 18 As noted in the ISRs before the restructuring, the Development Objective rating was either Satisfactory or Moderately Satisfactory.

Disbursements US$0.41 million equivalent US$31.78 million equivalent Weight 1.3% 98.7% Weighed score 0.05 4.94 Total score 4.99 equivalent to Satisfactory (score rounded to 5) Note: On a rating scale with Highly Unsatisfactory 1, Unsatisfactory 2, Moderately Unsatisfactory 3, Moderately Satisfactory 4, Satisfactory 5, Highly Satisfactory 6

73. Therefore, based on this methodology, the overall Project outcome is rated as Satisfactory.

3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development

74. The Project did not specifically target these social objectives. However, the many positive outcomes of the project have benefited Russian society, namely the private owners of dwellings in the Russian Federation. Overall, the Project contributed to facilitating the development of the real property market by providing security of ownership and facilitating registration of property rights and transactions. While the poverty impact cannot be measured directly, it is likely to be high, as it creates tenure rights, and thus enables poor landowners to have access to finance by mortgaging or selling their land or other real estate property. In addition, it has contributed to improving the investment climate in the country, and the improved registration system will facilitate access to capital through mortgages and thus contribute to shared prosperity. The Project also tracked gender-disaggregated property ownership data. According to the latest records as of the end of 2014, 64.6 million women and 52.6 million men are registered as owners or co-owners of property in Russia.

(b) Institutional Change/Strengthening

75. Established in the early stage of this Project, Rosreestr has become one of the world’s largest real estate registration agencies. Since 2013, the number of registration staff has started to decrease, from 38,222 in 2013 to 33,816 currently. This is mainly due to the transfer of activities to the MFCs and a general trend at the federal level to reduce the number of public employees. The State Cadastre of Property now contains information on more than 156 million property items (parcels and buildings) and about 169 million titles of any type officially registered. In 2015, over 28 million applications for registration of rights, encumbrances (limitations of real estate rights) and transactions have been processed. The Project assisted in consolidating functions of the agency into the overall system and played a key role in drafting laws and legal regulations, design, development and implementation of the unified registration system, including online services, e-conveyancing, development of an archive strategy, organizational development of procedures and standards, staff policy, and customer service including departmental call centers.

76. Moreover, the new Federal Law on Real Estate Registration, developed under this project and adopted in July 2015, realized the initial vision that stemmed from the LARIS Project: the creation of the Unified State Register of Immovable Property on January 1, 2017, that will combine the Unified State Register of Rights to Real Property (USRR) and the Register of the State Immovable Property Cadastre into one database.

77. Another major factor in terms of institutional change has been the development of a greater client service focus. In addition to Project funded developments, Rosreestr has impressively improved clients’ experience through renovated client areas, call centers operating 24/7 across the country, and improved and

16 simplified service delivery, namely since the connection of Rosreestr in 2011 to the SMEV.19 This enables Rosreestr to exchange information in digital form with 40 Federal Ministries and Agencies as well as regional and municipal authorities. Citizens are no longer required to submit to Rosreestr documents issued by other government or municipal institutions. In 2015, over 8 million requests were submitted via the interdepartmental electronic system. 2,662 MFCs now provide Rosreestr services in all subjects in the Russian Federation. These changes have also improved working conditions for staff, as clients are more informed and better able to ask for specific advice, thus encouraging a more cooperative approach.

78. This has contributed to the impressive client satisfaction surge from 60% to more than 95%20, showing a remarkable and extremely positive cultural change in a very short period of time.

79. Moreover, based on a survey on public services online performed by the Russian Public Opinion Research Center21 in 2015 in cities of over one million people, e-services provided by Rosreestr are ranked number one for both individuals’ and legal persons’ satisfaction, ahead of the Federal Migration Service, Ministry of Internal Affairs and the Pension Fund, Ministry of Health and the Federal Tax Service. Rosreestr has become the leader in the following categories: response to individuals, speed of service, response of representatives of companies, information on the status of the application, and information about service as a whole.

80. The Project funded a total of 11 training programs and 7 workshops worth over $400,000 for capacity building. Over the Project period, over 33,000 Rosreestr staff were trained on technical, professional, organizational or administrative aspects. The training included training of trainers, staff, and coaching covering various aspects: use of systems, legal and technical procedures, customer service, etc. There were trainings as well as seminars and study tours, including in Turin on international good practice on procurement and financial reporting, as well as on project management and project monitoring and evaluation.

81. Moreover, as Rosreestr is becoming an important actor in land registration at the international level, it is now involved in various international professional networks. Rosreestr, for example, hosted the annual UN Working Party on Land Administration workshop in Moscow on June 25-26, 2015.

82. While not originally intended, the Project had a very positive impact on Russia’s Doing Business rating in terms of registering property. Rosreestr’s impressive success took Russia from the 51st place in 2011 to 12th place in the 2015 and to 8th place in the 2016. Compared to previous years, the 2016 edition includes some important changes as it now assesses not only the performance of property registration systems but also some qualitative elements: reliability, transparency, national coverage and dispute resolution. These ratings are now monitored with great scrutiny at the highest level of the Russian Government.

3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops

83. Based on client surveys conducted during Project implementation, the level of satisfaction surged from 60% in 2005 to 72% in 2011 and to an impressive 90% in 2014. The level of satisfaction was also measured separately on an independent web portal called “Vash Control” and there it reached over 95% satisfaction by the end of the Project.

19 http://smev.gosuslugi.ru/portal/ 20 At the end of the project based on independent web portal “Vash Control” (your control) 21 www.vciom.ru

84. On April 15, 2016, a stakeholders’ workshop was organized by Rosreestr at the occasion of the completion of the Project. Participants from Rosreestr, the World Bank, FAO and representatives from Civic Council of Rosreestr, notaries, cadastral engineers, MFC, Ministry of Economic Development, and Ministry of Finance took part in this event. All the participants at this stakeholders’ workshop were very satisfied with the improvement of the quality of cadastral and property registration services provided by Rosreestr and by MFCs. Some comments during the workshop showed that e-queuing and electronic services, simplified procedures, improved legal framework, the efforts made in capacity building and training, and the focus put on clients have contributed to the enormous progress made in this field. Further training is expected for the unified system and procedure that will be implemented at the beginning of 2017. In terms of future development, data quality improvement and registration of agriculture land have been identified as important topics.

4. Assessment of Risk to Development Outcome Rating: Low

85. There are a number of aspects that demonstrate the sustainability of the Project and low risk to development outcome:

 The Federal Target Program “Development of the Unified State System for Registration of Rights and Cadastral Registration of Immovable Property (2014-2019)” (FTP) was approved by RF Government Resolution #903 on October 10, 2013. The program envisages the necessary financial resources for the work included in the program.

 The new “Unified Law” (Federal Law #218-FZ, dated July 13, 2015, “On State Registration of Immovable Property” that will become effective on January 1, 2017 introduces further simplifications of procedures, reduction of time for services delivery, increases the guarantees of rights during state registration, reduces the paper flow, and facilitates conversion to e-services. A unified procedure for cadastral and property rights registration will be introduced with a maximum 10 day deadline for combined cadastral and property rights registration.

 Under the Project, Rosreestr has developed a package of regulations on archival storage and electronic conversion of title deeds and cadastre cases. Methodological recommendations developed under the Project served as the basis for Rosreestr’s Order #P/426, approving the Strategy for archival storage and electronic conversion of title deeds and cadastre cases, dated September 5, 2014. The Federal Target Program includes construction of archival repositories for the Rosreestr, including design and exploration works and logistical facilities (in such cities as Angarsk, Yekaterinburg, Kaluga, Kemerovo, Krasnodar, St. Petersburg, Khabarovsk, Novosibirsk, Stolbishche - the Republic of Tatarstan).

 The Project deliverables helped implement the unified labor management system based on the development of scientifically accurate framework for labor standards in Rosreestr. Rosreestr issued Order # P/614, dated December 19, 2014, “On Implementation of Labor Standards Systems” through which all regional offices have started the implementation of the local labor standards systems. The local labor standards were introduced in all Rosreestr regional offices in September 2015.

 Rosreestr’s Order #P/140 “On improving technological processes for implementation of functions in the area of state registration of rights performed by the Rosreestr regional offices”, dated March 31, 2015, introduced a plan for improving technological processes used by the regional offices to implement the unified technological process for delivery of public services related to registration of rights and transactions and for the provision of data from the Unified System for Registration of Rights.

The introduction of the unified technological process is expected to be completed by the end of 2016 according to the implementation plan.

86. The sustainability of project outcomes appears to be quite strong overall. The Project achievements of improving the registration system by developing standardized, clear and more efficient registration procedures, and by introducing an improved information management system for the registration offices are fully integrated into Rosreestr and its operations. Even though Rosreestr is not a self-financed organization due to Government policy, the improved system is generating a strong income flow through registration and other fees which created the conditions to ensure sustainability. Moreover, the fact that Rosreestr is in advanced discussion with the MED and the MOF to seek support for a new lending operation in related fields shows its willingness for continued improvements. This is in line with the clear will of the government authorities to see the Russian registration system ranking at the highest level of the Doing Business indicator which should contribute to maintaining strong support.

87. Having been transformed into a unified organization with responsibilities in mapping, cadastre and property registration over the course of the Project and with more than 33,000 employees, broad geographically distributed network of separate departments in 83 territorial bodies of Russian State Register and the Cadastral Chamber in addition to access points for the receipt and delivery of documents in more than 2,200 multifunctional centers, Rosreestr has, without any doubt, the institutional capacity and the technical and managerial skills to continue its operations.

88. Rosreestr generates good revenue for the Treasury, but will continue to rely on the state’s capital investment budget for important investments that are needed for digitizing all archives, building archive centers and back offices. Important investments are also needed in mapping. These investments could hardly be covered by the collected fees. In addition, by outsourcing the front offices to the multifunctional centers, half of the revenue collected there goes to the municipalities, which are providing the front office service.

89. Otherwise, with an improved and adequate legal framework and the world largest unified registration system to be fully implemented in 2017, Rosreestr is likely to continue to fulfil its mission and improve its already excellent services to citizens.

90. Therefore, the overall risk to the development outcome appears to be low.

5. Assessment of Bank and Borrower Performance

5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Moderately Satisfactory

91. Initially, the Cadastre Development Project and the Project were supposed to be one single project aiming to put in place one unified system. This was the vision and it was aligned with international trends22 at that time. Since the two organizations involved (FCA and FRS) did not have the same level of readiness, it was decided to split the project into two and start working first with FCA on the Cadastre Development Project. However, as soon as the FRS was ready to move ahead with the Registration Project and just three weeks after the Project became effective, the Presidential Decree was issued establishing a single entity, Rosreestr, with the merger of FCA, FRS and the Cartography and Geodesy agency. In this context, the

22 Cadastre 2014 published by the International Federation of Surveyors (FIG) http://www.fig.net/resources/publications/figpub/cadastre2014/translation/c2014-english.pdf

19 earlier decision to split the project in two had important consequences, namely on the slow disbursement, since the management of the newly merged agency put the priority on the project that was already started, leaving the other behind. It would not have been advisable to take more time to prepare a unified project because the Cadastre Development Project was ready to go and any delays on that end would have only slowed down a fundamental economic development instrument in Russia.

92. This being said, the Bank team was well experienced and knowledgeable, and worked closely with very competent counterparts to define Project activities. The Project was well designed and responded well to both the client and sector development needs. The Project also earmarked funds for capacity building to secure the long-term success and sustainability of the outcomes. There were some shortcomings however. The language of the PDO was not harmonized in the PAD and the PDO indicators were too market-sensitive, and did not accurately measure the contributions of the Project activities to the PDO. Although, these issues were addressed with the August 2010 restructuring, the Bank’s performance rating for quality at entry is rated as Moderately Satisfactory.

(b) Quality of Supervision Rating: Satisfactory

93. The Bank supervised the Project on a regular basis, providing appropriate and well targeted advice and observations. The aides-memoire provided evidence of regular supervision and professional advice given by the Bank’s experts throughout the Project. Issues requiring Bank attention, including the merger and critical procurement items, were addressed proactively. In dealing with the merger, the Bank team was constructive and accommodating, and facilitated the extension. While a restructuring could have been considered immediately after effectiveness to realign the Project to new institutional realities and priorities, it was not possible as the Bank needed to wait for the new arrangements to be put in place at the Borrower’s end. The fiduciary and safeguards policies were well managed and reported. Over the ten years of the project, from approval to closing, the project had 4 TTLs but this did not impact the quality of supervision because other key team members from the Bank and FAO23 ensured Project continuity. Moreover, FAO provided high-level technical expertise on Project supervision and guidance on international standards and best practices. This expertise, especially in IT, was very beneficial to the Project, as the largest component dealt with Information and Communications Systems.

94. The involvement in the last five years of the project of Task Team Leaders and FAO IT specialists who were fluent Russian speakers further improved cooperation and facilitated greater mutual understanding until Project completion. Therefore, the Bank’s performance rating for supervision is Satisfactory.

95. The Bank’s performance was adequate and facilitated the success of the Project. Restructurings and extensions were performed appropriately and on time and contributed to the successful implementation of the project. Weighing the moderately satisfactory rating for quality at entry and the satisfactory rating for quality of supervision, the overall Bank performance is rated as Moderately Satisfactory.

23 Through the Bank-FAO Partnership Agreement.

5.2 Borrower Performance (a) Government Performance Rating: Satisfactory

96. The Project enjoyed a great deal of Government support from the very beginning as the Project was supporting the Government’s own reform agenda. The first clear signal was the Presidential Decision of December 2008 to create a strong national organization to take charge of the registration mission. One year later, it was followed by an Order of the MED24 to create a unified federal system in the area of property rights and cadastre registration. Yet another signal came in July 2010, from a Federal Law creating the MFCs, through which property rights and cadastre registration are the most demanded services. In support of this strategy, the Russian Federation invested ten times the amount of money invested directly in this project in the Federal Targeted Program to support the development of the registration system across Russia. There was also direct interest from the President’s office and the change in Russia’s performance in the Doing Business rankings as a result of the Project was regularly monitored. This strong Government leadership and commitment have contributed to the success of the Project and to the achievement of the PDO and PDO indicators.

97. Therefore, the Government performance is rated as Satisfactory.

(b) Implementing Agency or Agencies Performance Rating: Satisfactory

98. The activities under the Project were very well designed by FRS and implemented by Rosreestr. Rosreestr had the vision, the capacity and the willingness to implement the Project, and cooperated with the Bank to ensure that the Bank’s requirements were addressed. Procurement and FM rules were always adhered to. Goods and services were delivered on time, and related payments were affected fully and on time. There was a one-year period from December 2012 to December 2013 when the Project’s Development Objective (DO) and Implementation Progress (IP) ratings were Moderately Unsatisfactory due to low disbursements and delays in the procurement of two complex IT packages that slowed down implementation for most of 2013. However, thanks to greater cooperation between Rosreestr and the Bank as well as intensified procurement trainings and other capacity building measures, the last 20 months of the Project from June 2014 to February 2016 saw a remarkable turnaround. Disbursement rates improved from 40% in June 2014 to 97% by the end of the Project. During this period, Project performance was Satisfactory for both DO and IP. Concurrently, Rosreestr continued to improve its overall operating environment and strategy in notable ways which had a positive impact on PDO achievement and sustainability. Rosreestr also updated its monitoring and evaluation system, enhancing the Project’s ability to track progress and take corrective action where needed.

99. In light of this transformation and the overall Project outcome, the implementing agency performance is rated as Satisfactory.

100. Government, FRS and Rosreestr performed well in designing and implementing the Project, namely because the PDO and the Government’s strategy were aligned to create a modern land administration system. All Project indicators were met thanks to the strong commitment of the Government,

24 Order of the MED of Russia # 534 of December 18, 2009

Rosreestr and very dedicated and competent individuals involved in the Project despite changes in personnel and the merger that created some disruption. Therefore, the overall Borrower performance is rated as Satisfactory.

6. Lessons Learned

101. Political engagement. The political engagement coming from the highest Government level can highly contribute to the success of a project, as was seen in the case of this Project. Such top-down leadership puts a lot of responsibility on the shoulders of capable managers and also ensures the availability of resources. This is particularly true in Russia since the Presidential Decree enacted at the very beginning of the Project sent a clear signal that property registration was a high priority in this country. The Government of the Russian Federation wanted to implement a comprehensive and world-class registration system in a very short period of time and provided the resources to reach this target. The fact that high- level government management is still monitoring the ranking of Russia in the Doing Business index on registering property shows that the topic remains important for improving business climate in the country. This political engagement has contributed to high achievements at the completion stage.

102. A large national program has its own agenda. The Registration Project that was supposed to be a US$ 100 million project, funded 50/50 by the Bank and the Russian Federation focusing on 25 SOFs was, shortly after the Project effectiveness, triggered by the Presidential Decree of December 25, 2008, as part of a national priority program of more than US$ 1 billion. Therefore, it was normal that the focus of Rosreestr switched to the national program and its agenda, leaving the Bank funded project in second place in terms of priority with a slow disbursement pace. At the end of the day, this national priority program that initially caused distortions had a very positive impact on the Project. With changing circumstances, the Project focus changed to an area where the Project could efficiently and effectively make its greatest impact: the development of IT systems. Such flexibility within the PDO is, therefore, crucial to respond to evolving client needs and achieving the Bank’s overall objectives of ending poverty and boosting shared prosperity.

103. Slow disbursement should not overshadow larger improvements. The slow disbursement pace from 2008 to 2010 and the cancellation of a US$ 17 million loan resulted in some tensions during Project implementation as the Bank was focusing on disbursement figures. However, it is important to understand that sometimes slow disbursement is a result of external factors and in this case an important institutional restructuring that the Bank had recommended. This restructuring and the creation of a unified agency has led to a more sensible and sustainable framework in the sector, delivering Project outcomes and cementing their sustainability. This suggests that patience is important and that a focus on important project procedures such as loan disbursement should not distract the Bank from acknowledging and appreciating larger, far- reaching sectoral reforms.

104. Fruitful collaboration. Even if Russia had the capacity to develop a good property registration system on its own, the involvement of the World Bank has helped to encourage the Government of the Russian Federation to invest in a timely manner in the registration system, in addition to bringing international expertise that has contributed to the development of a world-class registration system. The fruitful cooperation between the specialists from Rosreestr, the World Bank and the FAO proved to be a good way to learn from the international experience in development of registration systems to seek the necessary advice and avoid preventable mistakes.

105. Side effect of quality of services. The citizen-focused approach developed by Rosreestr and by the Government with the development of the MFC network is remarkable. Property registration services are now available through over 6,000 service points, including MFCs. Mobile teams are also operational to provide registration services at home for people unable to go to the registration offices. Client satisfaction

22 reaches more than 90%. The potential side effect of this exceptional and low-cost25 quality of services for both electronic and paper-based applications is that it could slow the penetration of e-services (which are more cost-efficient), because the conventional services are too good and easy to access.

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies

106. Borrower Letter dated August 12, 2016. Please refer to Annex 7 for details.

(b) Cofinanciers

107. Not Applicable.

108. “Under the FAO - World Bank Cooperative Agreement, FAO has been heavily involved in the land reform work undertaken by the Russian Federation over the past 15 years, as part of several World Bank financed projects, offering expertise and technical assistance in various areas, including information and communication technology, spatial data infrastructure, property valuation and taxation. As a result of this joint effort, significant progress has been achieved in increasing the transparency of the property registration process and improving public services in Russia. 109. The Registration Project was providing support to the wider government effort to improve public service delivery and guarantee secure land tenure for individuals and businesses in Russia. The Project directly supported Rosreestr Information and Communication Technology Strategy 2010-201226, which is in the framework of Russian Federation e-Government Strategy 27 , the Roadmap 2013-2018 and the Rosreestr Detailed Action Plan for the period 2013-2015. The Roadmap includes ambitious indicators, such as: average 5 days processing time for cadastre service (subdivision or merging properties, creation of new parcels) and 7 days for processing registration rights (sale/buy) at national level by 2018; 70% of the services should be provided electronically by 2018. 110. As part of Registration Project, FAO provided technical advice to the Bank team on the information and communication system design and development and was responsible for the supervision and implementation support of the largest project component: Component 2. Information and Communications System as well as in design and development of the Archive Strategy under Component 1. Institutional development.”

25 Registration fees are the following: 50 rubles for e-application and 220 rubles for paper based application. 26 Concept of Creation of an Integrated Federal System of State Registration of Real Property Rights and State Real Property Cadastre, approved by the Ministry of Economic Development of the Russian Federation, Order N 534/December 18, 2009 27 Plan of Transition to Public e-Services and the Electronic Performance of Public Functions by Federal Authorities, approved by the Directive of the Russian Federation Government, N: 1555p/October 17, 2009.

Annex 1. Project Costs and Financing (in US$)

Components Appraisal Estimate Actual (USD millions) Percentage of (USD millions) Appraisal Component 1: Institutional 58.42 8.47 14.5 Development Component 2: Information 57.07 51.78 90.73 and Communications Systems Component 3: Improvement 2.41 0.41 17.01 of Professional Skills Component 4: Project 4.65 2.36 50.75 Management Total Baseline Cost 122.55 63.03 51.43 Physical Contingencies 0.00 0.00 Price Contingencies 0.00 0.00 Total Project Costs 122.55 63.03 51.43 Front-end fee PPF 0.00 0.00 Front-end fee IBRD 0.50 0.50 100 Total Financing Required 123.05 63.53 51.63

Source of Funds Type of Appraisal Actual (USD Percentage of Financing Estimate (USD millions) Appraisal millions)

Borrower Co-financing 73.05 32.28 44.2%

International Bank for Reconstruction and Loan funds 50.00 31.25 62.5% Development

Annex 2. Outputs by Component

Component 1. Institutional development

This component met its objective to improve the quality of registration services to the public, improve the physical facilities of offices and to monitor the effectiveness of the project by monitoring the impact of the improved customer services.

This component consisted of five subcomponents: A. Improvement to the legislative framework. In total, the following number of normative acts were approved: 20 in 2011, 7 in 2012, 31 in 2013, 23 in 2014 and 25 in 2015. This includes the Federal Law No. 218-FZ on the State Registration of Immovable Property, developed under a project-funded consultancy, adopted in July 2015 and coming into force on January 1, 2017. A new Federal Law No. 431-FZ on Geodesics, Cartography and Spatial Data, was also adopted in the State Duma at the end of December 2015 and will also come into force on January 1, 2017.

B. Client Services Development. The methodic materials on labor standards in the area of registration of rights and cadastre recording of property were prepared; The survey covered the following public services:  State registration of property rights;  Providing data from the Unified State Register of Rights and Transactions in Immovable Property (USRR);  State cadastral recording of property;  Providing data from the state cadastre of property; The survey was closely coordinated with the Action Plan (Road Map) “Improving quality of public services in the area of state cadastral registration of immovable property and state registration of rights and transactions in immovable property”, approved by the Russian Federation Government Resolution # 2236-р dated December 12, 2012. This Action Plan called for the development of centers for storage of documents contained in the Unified State Register of Rights and Transactions in Immovable Property (USRR) in paper form, and provide such centers with necessary logistical facilities.

C. Dissemination of Registration Service Information to the General Public

Under this component, the following activities were performed:

 Development of materials for the Rosreestr internet site (RP/CQS-13);  Preparation of information materials on Rosreestr activities and services (RP/CQS-45:), including templates and information on the procedures for registration and visual identification of Rosreestr;  Provision of information (RP/CQS-39-1) to develop generalized information services, based on existing data and the capacity of the IT system, for specific categories of clients, particularly government bodies and institutional and professional clients, such as banks. The outputs of this contract was a study of the market, identification of key users, and, on a pilot basis, methodology for providing information to key users, including customized data reports.

D. Project Monitoring. A series of social surveys were conducted by the Rosreestr to seek public assessment of ongoing institutional changes and Rosreestr's efforts to create modern registration system.

In particular, the Project included such surveys as (1) assessment of current quantitative and qualitative indicators of Rosreestr activities, including social assessment; and (2) evaluation of institutional impact and control over the project implementation. These surveys and other monitoring activities (surveys through SMS, telephone interviews, surveys in social networks, surveys conducted on the public service monitoring website “Your Control”) have confirmed the positive feedback from the public on the Rosreestr's efforts to promote its services and on the results of its restructuring. Client satisfaction with the registration services provided by Rosreestr has increased to more than 95 percent. 91 percent of respondents have positively assessed the efforts to simplify and clarify registration procedures and noted the increased level of qualification of the registration staff.

E. Document storage system.

Rosreestr’s archiving capacity has effectively been increased with the adoption of an archive strategy, and the e-archive systems are in use in 166 registration and cadastral chamber offices. On September 5, 2014 Rosreestr adopted the Archive Strategy, developed under this component, including the Implementation plan and the methodology for reorganizing the archive folders, in order to minimize the number of documents to be kept for long term, the quality control mechanism and territorial offices, where the interregional centralized archives will be established. Massive conversion of paper documents is planned in the context of the Federal Targeted Program until 2019, which will speed up the processing time and will contribute to the optimization of number of staff and offices. Since the beginning of 2015 all incoming documents will be converted to digital form. The Rosreestr’s archive strategy made it possible to radically revise the main direction for the development of the archiving system, waive collection and storage of the entire range of exclusively paper documents and shift to a mixed storage of only legally important paper-based and electronic documents which, in turn, will vacate significant space currently occupied, thereby helping to streamline the keeping of files of legal documents, as well as accelerate provision of information on previously registered rights. In terms of paper archives, the majority of offices are equipped with mechanical shelves to improve storage conditions, while Rosreestr has already digitized over 15.7 million property folders and cadastre cases. Regional offices of Rosreestr and branches of the Federal Cadastre Chamber of Rosreestr have started to digitize their paper archives and two archiving centers for paper document storage are under construction in Kaluga region as well as in Tatarstan Republic. A total of seven such centers across the country is planned.

Component 2. Information and Communications Systems

The objective of this component was to design and implement an efficient and secure unified information system with a central database at the Federal level, providing open and transparent access to information over the Internet to the other agencies, municipal authorities, professional users and the public in general and creates aggregate statistical information within a flexible environment at the regional and federal levels, allowing creation of a wide range of reports for policy makers.

The component supported the implementation of an “e-filing” system for registration of applications through the Internet, introduction of e-signature and electronic documents, creation of digital archives, establishment of help desk and call centers. The component supported also supply of hardware, communication equipment and licenses.

The implementation of this Component provided Rosreestr and its territorial offices with the equipment necessary for the deployment of unified registration system as well as developed and established Rosreestr’s call center in Kursk. The solutions developed under the Project were used for the establishment of call center in the Republic of Tatarstan.

The following activities were performed under this component:

A. Development of the standardized information system for regional and local offices

The analysis of the existing information systems, in use in the regional offices, was completed and functional specifications for the unified system were developed (Package RP/QCB-20-1).

B. Procurement and installation of telecommunications equipment

The outputs from this sub-component was delivery and installation of the unified system and the necessary telecommunications equipment in Rosreestr territorial units.

The unified system was developed (Government financing), tested and piloted in two SOFs (Moscow and Rostov). Interoperability with various government and municipal systems, including Tax Authorities was implemented, online access to information and e-filing functionalities was implemented as well, allowing online registration of client requests and receiving digitally signed documents.

Standardized communication infrastructure was ensured for all SOFs. Database management licenses were delivered and installed. (Package RP/ICB-12).

C. Procurement and installation of telecommunications equipment.

The outputs for this sub-component were: delivery and installation of equipment suitable for running the automated system and included:

 The analyses of the information technologies and automated systems for handling calls of the Rosreestr’s applicant and the design of the unified departmental call handling centre (DCHC) of the Rosreestr (at Federal level) and the standard design of DCHC at regional level (Package RP/CQS-36)  The contract for the procurement of equipment for unified Internet-Protocol (IP)-network and data encryption facilities for Rosreestr territorial units were completed (Package RP/ICB-05)  The installation of equipment for implementation of USRR and SCIP federal information resource (Package RP/ICB-06);  The installation of equipment for the unified departmental call handling centre (DCHC) of the Rosreestr at Federal regional levels (Package RP/ICB-10);  The supply of equipment for the reserve data processing center (Package ICB-31-1 merged with ICB- 32)  The supply of equipment for the data processing center, which is now fully operational (ICB-31).

D. Conversion of data

The outputs for this sub-component were: conversion of data from existing databases in each project region into the databases of the new standardized information system and piloting the transfer of approximately one-third of the paper documents in the regions of the uniform archive storage centers into an electronic document format.

The analysis and the development of standard design and technical specifications for data processing at the territorial units (package 25) were completed.

Supply and installation of infrastructure of data processing centers for the unified system (Package RP/ICB-31) was completed.

It is worth mentioning that Rosreestr achievements in ICT development has been recognized nationally and internationally and Rosreestr has received several prestigious awards including the President’s award at the annual ESRI28 international conference in San Diego, USA (July 2011), and the award for “The best 10 IT projects for the public sector” for the service “Recording of a real property objects”.

Component 3. Improvement of the professional skills of registration service staff

The objective of this component was to ensure that all staff of the registration agency were provided with sufficient information and training to carry out their tasks in the new system. Under this Component, more than 70 professionals involved in the implementation of the Project attended 18 training courses and international conferences and seminars. Participants acquired necessary skills for the procurement of goods, works and consulting services under the World Bank financed projects, familiarized themselves with the peculiarities of the registration of property rights in various countries, studied the systems of service delivery related to the access to the information contained in the cadaster and registry of rights, had a chance to get acquainted with successful land management solutions based on the example of other countries, as well as share their experiences of creating a modern cadaster and registration system in the large country. In addition, more than 18,000 employees were trained in departmental programs and upgraded their qualification, including 1,277 employees who were trained in single window technology.

Component 4. Project Management

The objective of this component was to provide adequate logistical and management support to carry out the project. The measures aimed at achieving development objectives were successfully implemented mostly due to the effective organizational structure of the Project management established at the initial stage of its implementation. One of the main elements of the structure was the Project Implementation Unit - Non- commercial Foundation for Enterprise Restructuring and Financial Institutions Development (FER) - staffed by qualified personnel. Another important element of the structure were short-term consultants selected on a competitive basis to assist in addressing specific Project needs.

28 ESRI is a developer and producer of geographic information systems.

Annex 3. Economic and Financial Analysis

Russia Registration Project Economic Annex Introduction

The Russia Registration Project began in 2006 with the objective to “to improve the system of registration of legal rights to immovable property by developing standardized, clear and more efficient registration procedures, and by introducing an improved information management system for the registration offices.”

This was to be achieved through four Project components: A. Component A: Institutional Development; B. Component B: Information and Communications Systems; C. Component C: Improvement of the Professional Skills of Registration Service Staff; and D. Component D: Project Management This annex has looked at the monetizable and non-monetizable benefits of the Project. For this, the annex assessed the contribution of each Project component towards the PDO and attempted to quantify benefits, where possible.

In summary, the Project benefits come from four main channels: (a) E-governance productivity gains to the economy; (b) savings related to transport costs; (c) reduced carbon footprint; (d) improved tenure security; (e) improved services and access to these services; and (f) improved investment climate.

Based on these assumptions, a 5% discount rate and 1% of total benefit attributable to the Project, the 10 and 20-year NPV and IRR estimates for the full Project and Bank’s financing share are shown in the table below. A sensitivity analysis shown later shows that these estimates are highly robust.

Summary: NPV and IRR Analysis USD million (unless otherwise mentioned) Project Bank's Share NPV (10 year) 279.2 137.3 NPV (20 year) 336.1 165.3 IRR (10 year) 71.70% 71.70% IRR (20 year) 71.76% 71.76%

Analysis by Project Component

Component A: Institutional Development The objective of Component A was to improve the quality of registration services to the public, improve the physical facilities of offices and to monitor the effectiveness of the Project through monitoring the impact of the improved customer services. This Component resulted in improving the legislative framework of cadastre and registration services in Russia, thereby creating unified system, which greatly simplified the processes and procedures related to the registration of property. This simplification is reflected in

Russia’s markedly improved Doing Business 29 distance to frontier (DTF) metric 30 in the area of ‘Registering Property.’

Russia: Registering Property DTF 100

90.1 90.5 90 88.0

85 81.7 81.6 79.1 79.1 80 77.1 77.3 77.3 77.5

75 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Doing Business historical data Note: Increasing Distance to Frontier (DTF) value shows improvement. The closer it is to 100, the better the country’s performance.

Component B: Information and Communications Systems

A majority of the Project funds went to Component B whose objective was to design and implement an efficient and secure distributed information system, including a unified software application for registration of rights and a telecommunications subsystem for information access and exchange. This Component was highly successful and can be credited with the creation and later development of the Rosreestr webportal, the introduction of e-services and time-stamped e-signatures, and unified databases related to property registration at all levels of Government. Key stakeholders like notaries can issue time-stamped e-signatures. At the same time, the digitized workflow means that people can obtain verifications online and no longer always need notaries. At the same time, the electronic system has created online lichnii kabinet (“private cabinet”) for cadastral engineers who are now able to verify the physical attributes of the properties online. By 2017, the provision of private cabinets is expected to improve the accuracy of their work by over 90%.31 This will reduce errors related to real estate transactions and make the information more reliable. Moreover, private sector groups that engage in real estate transactions expect to save 95% of their cost as their employees no longer need to travel to Rosreestr, wait in line for services, and then wait long periods for their registration and transaction requests to be processed.32 Finally, the shift to digitization has allowed Rosreestr to provide its services through the Multi-Functional Centres (MFC) across Russia. These MFCs

29 Rankings are calculated for the 2 most recent years. Year to year changes in the number of economies covered, number of indicators and methodology affect the comparability of prior years. For comparisons across longer time series, the Distance to Frontier metric can be used. 30 The distance to frontier score aids in assessing the absolute level of regulatory performance and how it improves over time. This measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. This allows users both to see the gap between a particular economy’s performance and the best performance at any point in time and to assess the absolute change in the economy’s regulatory environment over time as measured by Doing Business. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. For example, a score of 75 in DB 2015 means an economy was 25 percentage points away from the frontier constructed from the best performances across all economies and across time. A score of 80 in DB 2016 would indicate the economy is improving. In this way the distance to frontier measure complements the annual ease of doing business ranking, which compares economies with one another at a point in time. 31 Based on an interview with cadastral engineer, Mr. Viktor Stepanovich Kislov. 32 Based on an interview with Mr. Pavel Nikolayevich Romanov, Head of ASI Property Working Group.

30 were established under Federal Law 33 to provide Federal, regional and municipal services using the principle of Single Window. 2,662 MFCs in all subjects of the Russian Federation are actually providing Rosreestr services.

These measures have made: (a) services more easily accessible to the public; (b) improved tenure security e.g. notaries can now time-stamp transactions helping banks determine the order of priority for mortgages; and (c) improved investment climate as domestic and foreign investors interested in land or buildings have a one-stop shop system where they can obtain data and carry out transactions.

Over the course of the Project, the number of days to register a property have reduced by over 70% from 30 days in 2006 to 8 days in 2016. As a result, Rosreestr has been able to improve its efficiency. This can be seen in the fact that 1,915 transactions per employee were processed in 2015, a 173% increase in productivity compared to 700 transactions per employee in 2015.

In terms of quantifiable benefits, Component B has been instrumental in improving productivity in the economy by making procedures at Rosreestr more efficient, which in turn saves time for the general public, investors, and stakeholders like cadastral engineers and notaries. Moreover, since those people and businesses that are now making use of e-services no longer spend time traveling to Rosreestr to submit and collect documents, the carbon footprint of Rosreestr has gone down. While there is not enough data to do greenhouse gas (GHG) accounting, the annex will calculate the monetary savings to people for no longer traveling to Rosreestr.

Component B drives the NPV and IRR analysis of this Project. The two main channels for calculating Project benefits are: (a) e-governance productivity gains to Rosreestr i.e. the monetary value of time saved. This is calculated by using daily wage estimates and number of days saved; and (b) e-governance productivity gains to the general public and businesses i.e. the monetary value of time saved. This is calculated using daily wage estimates and an estimated 1 day saved by no longer traveling to submit documents, wait in line, and collect documents.

All calculations are shown on the last pages on this annex.

Component C: Improvement of the Professional Skills of Registration Service Staff

The objective of this component was to ensure that all staff of the registration agency were provided with sufficient information and training to carry out their tasks in the new system. While it would appear that there is no apparent benefit to this activity, a well-trained, professional staff is critical to the success of the other components.

Component D: Project Management

This is a standard component in all Bank lending projects and its objective was to provide adequate logistical and management support to implement the Project. This component was, therefore, crucial to the performance of the other components.

Summary

The table below shows the different benefits of the Project by component:

33 Federal Law No 210-FZ On Arrangements for provision of state and municipal services, adopted on July 27, 2010

Component Project Benefit(s) A. Institutional Development Improved tenure security; Improved services and access to these services; and Improved investment climate B. Institutional Development E-governance productivity gains to the economy (Rosreestr, general public, and businesses); Savings related to transport costs; Reduced carbon footprint; Improved tenure security; Improved services and access to these services; and Improved investment climate. C. Institutional Development Support to other components D. Project Management Support to other components

As discussed earlier, the quantifiable benefits of the Project are associated with Component B. These benefits are: e-governance productivity gains to the economy (Rosreestr, general public, and businesses); and savings related to transport costs. These benefits drive the NPV and IRR analysis, presented at the end of this annex. The last page of this annex includes a sensitivity analysis, which shows that the results are highly robust to changes in assumptions related to the discount rate (2.5% to 10%) and the percentage of benefits attributable to the Project (0.5% to 1.5%).

E-Productivity Savings on Registrations for Rosreestr, General Public, and Businesses

Blue = Assumption Green = Data from Rosreestr Black = Calculation

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Unit 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Productivity Savings - Rosreestr Total registrations # M 26.69 28.60 27.87 28.06 27.79 27.52 27.24 26.97 26.97 26.97 27.51 28.61 30.32 32.75 36.02 40.35 46.00 53.36 62.96 75.55 Change 7.2% -2.6% 0.7% -0.9% -1.0% -1.0% -1.0% 0.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

Number of days/registration - Without project days 30 28 26 24 22 20 18 16 14 12 10 7 7 7 7 7 7 7 7 7 7 Number of days/registration - With project 30 20 17 15 12 8 8 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Time saved per transaction days 0 8 9 9 10 12 10 9 7 5 3 0 0 0 0 0 0 0 0 0 0 Daily public sector wage USD/day 15.6 16.0 16.3 16.6 16.9 17.3 17.6 18.0 18.3 18.7 19.1 19.5 19.8 20.2 20.6 21.1 21.5 21.9 22.3 22.8 23.2 Change 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Total E-Productivity Gains/transaction USD 0 128 147 149 169 207 176 162 128 93 57 0 0 0 0 0 0 0 0 0 0 Total E-Productivity Gains USD M 0.00 3,407.68 4,190.39 4,164.90 4,751.78 5,761.32 4,848.15 4,406.10 3,460.55 2,521.26 1,543.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Productivity Savings - Public and Businesses Total registrations # 0.0 26.7 28.6 27.9 28.1 27.8 27.5 27.2 27.0 27.0 27.0 27.5 28.6 30.3 32.7 36.0 40.3 46.0 53.4 63.0 75.6

Time saved/registration days 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Daily private sector wage USD/day 20.5 21.0 21.5 22.0 22.6 23.1 23.7 24.3 24.9 25.5 26.2 26.8 27.5 28.2 28.9 29.6 30.4 31.1 31.9 32.7 33.5 Change 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Total E-Productivity Gains/transaction USD 20 21 21 22 23 23 24 24 25 26 26 27 28 28 29 30 30 31 32 33 34 Total E-Productivity Gains USD M 0.00 559.61 614.68 613.94 633.49 643.21 652.69 662.32 672.09 688.89 706.12 738.24 786.97 855.04 946.53 1,067.21 1,225.16 1,431.60 1,702.17 2,058.78 2,532.29

TOTAL PROJECT COST SAVINGS

Productivity Gains - Rosreestr USD M 0 3,408 4,190 4,165 4,752 5,761 4,848 4,406 3,461 2,521 1,543 0 0 0 0 0 0 0 0 0 0 Productivity Gains - Public and Businesses USD M 0 560 615 614 633 643 653 662 672 689 706 738 787 855 947 1,067 1,225 1,432 1,702 2,059 2,532 TOTAL PRODUCTIVITY GAINS USD M 0 3,967 4,805 4,779 5,385 6,405 5,501 5,068 4,133 3,210 2,249 738 787 855 947 1,067 1,225 1,432 1,702 2,059 2,532

NPV and IRR Analysis (10 and 20 year numbers based on 5% Discount Rate)

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Unit 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 NPV and IRR Analysis - Full project Total savings attributable to Project (1% of total) USD M 0.0 39.7 48.1 47.8 53.9 64.0 55.0 50.7 41.3 32.1 22.5 7.4 7.9 8.6 9.5 10.7 12.3 14.3 17.0 20.6 25.3 Total Project Cost USD M 63.5 Project Cash Flow USD M -63.5 39.7 48.1 47.8 53.9 64.0 55.0 50.7 41.3 32.1 22.5 7.4 7.9 8.6 9.5 10.7 12.3 14.3 17.0 20.6 25.3

Discount Rate % 5% NPV (10 year) USD M 279.2 NPV (20 year) USD M 336.1 IRR (10 year) % 71.7% IRR (20 year) % 71.8%

NPV and IRR Analysis - Bank Share of Financing (49.2% of total) Total savings attributable to Project (1% of total) USD M 0.0 19.5 23.6 23.5 26.5 31.5 27.1 24.9 20.3 15.8 11.1 3.6 3.9 4.2 4.7 5.2 6.0 7.0 8.4 10.1 12.5 Total Project Cost USD M 31.3 Project Cash Flow USD M -31.3 19.5 23.6 23.5 26.5 31.5 27.1 24.9 20.3 15.8 11.1 3.6 3.9 4.2 4.7 5.2 6.0 7.0 8.4 10.1 12.5

Discount Rate % 5% NPV (10 year) USD M 137.3 NPV (20 year) USD M 165.3 IRR (10 year) % 71.7% IRR (20 year) % 71.8%

Summary: NPV and IRR Analysis USD million (unless otherwise mentioned) Project Bank's Share NPV (10 year) 279.2 137.3 NPV (20 year) 336.1 165.3 IRR (10 year) 71.70% 71.70% IRR (20 year) 71.76% 71.76%

NPV and IRR Sensitivity Analysis (based on changes to discount rate and percentage of benefits attributable to Project)34

Sensitivity Analysis: NPV (10 year) of Full Project Sensitivity Analysis: NPV (10 year) of Bank Share of Project % Benefits attributable to Project % Benefits attributable to Project 279.2 0.50% 0.75% 1.00% 1.25% 1.50% 137.3 0.50% 0.75% 1.00% 1.25% 1.50% 2.5% 133.9 231.8 329.7 427.6 525.5 2.5% 65.8 114.0 162.2 210.3 258.5 5.0% 109.3 194.3 279.2 364.1 449.0 5.0% 53.8 95.6 137.3 179.1 220.9 7.5% 89.2 163.4 237.6 311.7 385.9 7.5% 43.9 80.4 116.9 153.3 189.8

Rate % Rate Discount

Rate % Rate Discount 10.0% 72.6 137.8 203.0 268.2 333.4 10.0% 35.7 67.8 99.9 131.9 164.0

Sensitivity Analysis: NPV (20 year) of Full Project Sensitivity Analysis: NPV (20 year) of Bank Share of Project % Benefits attributable to Project % Benefits attributable to Project 336.1 0.50% 0.75% 1.00% 1.25% 1.50% 165.3 0.50% 0.75% 1.00% 1.25% 1.50% 2.5% 177.1 296.7 416.2 535.7 655.3 2.5% 87.1 145.9 204.7 263.5 322.3 5.0% 137.8 237.0 336.1 435.3 534.4 5.0% 67.8 116.6 165.3 214.1 262.9 7.5% 108.2 191.9 275.6 359.2 442.9 7.5% 53.2 94.4 135.6 176.7 217.9

Rate % Rate Discount

Rate % Rate Discount 10.0% 85.5 157.1 228.8 300.4 372.0 10.0% 42.1 77.3 112.5 147.8 183.0

Sensitivity Analysis: IRR (10 year) of Full Project Sensitivity Analysis: IRR (10 year) of Bank Share of Project % Benefits attributable to Project % Benefits attributable to Project 0.50% 0.75% 1.00% 1.25% 1.50% 0.0 0.50% 0.75% 1.00% 1.25% 1.50%

35.29% 54.14% 71.70% 88.61% 105.17% 35.29% 54.14% 71.70% 88.61% 105.17%

IRR % IRR IRR % IRR 71.7% 71.7%

Sensitivity Analysis: IRR (20 year) of Full Project Sensitivity Analysis: IRR (20 year) of Bank Share of Project % Benefits attributable to Project % Benefits attributable to Project 0.50% 0.75% 1.00% 1.25% 1.50% 0.50% 0.75% 1.00% 1.25% 1.50%

35.68% 54.28% 71.76% 88.64% 105.18% 35.68% 54.28% 71.76% 88.64% 105.18%

IRR % IRR IRR % IRR 71.8% 71.8%

34 Note: numbers highlighted in blue represent NPV and IRR estimates given the assumptions of 5% discount rate and 1% benefits attributable to the Project.

Annex 4. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending

Samir M Suleymanov Sr Operations Officer ECSSD TTL

Edward C. Cook Sr Land Administration Specialist ECSSD TTL

Maha J. Armaly Sr Urban Finance Specialist ECSSD TTL

Maria L. Amelina Sr Social Specialist ECSSD Safeguards

Lead Land Administration ECSSD Land Gavin Adlington Specialist Administration

Wael Zakout Lead Operations Officer ECSSD Operations

Juan Navas-Sabater Sr. Communications Specialist CITPO ICT

Vera Matusevich Program Coordinator ECSSD

Svetlana Valeryevna Operations Analyst ECSIE Operations Hoersch (Leshcheva)

Jonathan Krull Business System Analyst Consultant

Mikhail Bunchuck Information Officer ISGEG

Nikolai Soubbotin Lawyer LEGEN

Alexander Balakov Procurement Specialist ECSPS Procurement

Senior Financial Management Financial Galina Kuznetsova ECSPS Specialist Management

Paul Munro Faure Valuation Specialist FAO

Neil Pullar IT Specialist FAO

Anna-Maria Bogdanova Operations Analyst ECCU1 Operations

Valencia Copeland Team assistant ECSSD

Sharifa Kalala Program Assistant ECSSD

Kathy Sharrow Program Assistant ECSSD

Daphne Sawyerr-Dunn Program Assistant ECSSD

Responsibility/ Names Title Unit Specialty

Supervision/ICR

Juan Navas-Sabater Lead ICT Policy Specialist GTIDR TTL

Co-TTL, ICR Main Senior Land Administration Daniel Roberge GSURR author, Land Specialist Administration

Alexander Balakov Senior Procurement Specialist GSULN Procurement

Senior Financial Management Financial Galina Kuznetsova GGOPR Specialist Management Senior Land Administration - Rumyana Tonchovska FAO ICT Information Technologies Officer Senior Land Administration Malcolm Childress GSULN TTL Specialist

Samir M Suleymanov Sr Operations Officer ECSSD TTL

Maha J. Armaly Sr Urban Finance Specialist ECSSD TTL

Svetlana Valeryevna Operations Analyst Operations Hoersch

Anna Georgieva Georgieva

Samantha Ashley de Martino Junior Professional Associate ECSSD Operations

Ireneusz M. Smolewski Consultant Governance

Aanchal Anand Land Administration Specialist GSULN Economist

Arcadie Capcelea Senior Environmental Specialist GENDR Safeguards

Lead Land Administration Land Gavin P. Adlington GSULN Specialist Administration

Sarah Leigh Hammill Senior Program Assistant GSULN Assistant

Senior Land Administration Land Camille Bourguignon-Roger GSULN Specialist Administration Land Lawyer and Registration Anthony John Lamb Consultant Law, Registration Specialist Senior Social Development Maria L. Amelina GGOGI Social Specialist Senior Investment Climate Tatyana Ponomareva Consultant Investment Climate Specialist

Caleb Travis Johnson Program Assistant GSULN Operations

(b) Staff Time and Cost Staff Time and Cost (Bank Budget Only)

Stage of Project Cycle USD (including travel and No. of staff weeks consultant costs)

Lending FY06 32 74,121 FY07 10 27,635

FY08 19 44,849

Total: 61 146,605

Supervision/ICR

FY09 29 82,144

FY10 20 68,085

FY11 22 83,983

FY12 50 199,292

FY13 26 125,513

FY14 34 184,619

FY15 20 103,488

FY16 28 157,152

Total: 229 1,004,276

Annex 5. Beneficiary Survey Results

Two customer satisfaction surveys were undertaken in connection with the project: one in 2011 and one in 2013.

The client satisfaction survey performed in 2013 and completed in August 2014 covered all regional offices, while the previous survey, completed in 2011, covered 26 regions out of 83 in total. Between the two surveys, the clients’ satisfaction went up from 60% in 2011 to 79% in 2014 and the results for clients’ understanding of Rosreestr procedures increased from 70% in 2011 to 88% in 2014.

There is also a web portal “Vash Control” (your control) where citizens can assess their level of satisfaction related to governmental services. Based on this web portal, the level of satisfaction regarding Rosreestr services reached more than 95% at the end of the project. This result is beyond the target of 90% stated in the Presidential Decree on Main Directions of Improving the System of Public Administration35 to be reached by 2018".

There was also a survey on public services online performed by the Russian Public Opinion Research Center36 in 2015 in cities of over one million people, in which e-services provided by Rosreestr are ranked number one for both individuals and legal persons' satisfaction, ahead of the Federal Migration Service, Ministry of Internal Affairs and the Pension Fund, Ministry of Health and the Federal Tax Service. Rosreestr leads in the following categories: Response to individuals, speed of service, response of representatives of companies, information on the status of the application and information about service as a whole.

35 No. 601 of May 7, 2012 36 www.vciom.ru

Annex 6. Stakeholder Workshop Report and Results

On April 15, 2016, a Stakeholder's workshop was organized by Rosreestr at the occasion of the completion of the project. Participants from Rosreestr, the World Bank, FAO and representatives from Civic Council of Rosreestr, notaries, cadastral engineers, a MFC, Ministry of Economic Development, and Ministry of Finance took part in this event at the World Bank premises.

After a welcome address made by Mrs. Sylvie K. Bossoutrot, program leader and acting Russia Country Director, Mr. Andrei Pridankin, Deputy Head of Rosreestr, did a short presentation on the status of the project, the achievements and impacts related to e-registration and future development with the upcoming unified system and procedure. Then, participants from external organizations expressed their views on the project impacts, the issues they faced during implementation and made some suggestions on what could be improved.

Cadastral engineers. The representative from cadastral engineers (they are 37,000 in Russia) mentioned the outstanding achievements in cadastre and property registration that have been accomplished in Russia in a very short period of time compared with other European countries. They have had important positive impact on urban development, taxation and land management. Since last year, the activities of cadastral engineers are regulated by law and aligned with the unified Law, and a self-regulated organization has been put in place. This should improve quality of services provided by these professionals and contribute to reduce corruption opportunities in cadastral registration. Web Office is also a major improvement, contributing to eliminate 90% of errors and biased decisions and reduce the risk of corruption.

MFC of Moscow. The MFC of Moscow, represented by a deputy head, was the first in the country to integrate Rosreestr services in 2013 and had access to distance-learning.

Agreement on cooperation between Rosreestr and GBU MFC was concluded in 2013. Since January 2014, Rosreestr offices for individuals have been closed in Moscow, as this function is now performed by multifunctional centers that provide public services. The MFC of Moscow strictly monitors the queue waiting time in line that it doesn’t exceed 15 minutes. Currently, the queue waiting time is less than 3 minutes. Applicants may make an appointment via Internet to visit the MFC when convenient. In addition, MFC has prepared instructions for residents that help determine the composition of the package of documents. These instructions are available at the MFC portal. Also, the information on the package of documents is available at the Center. SMS notifications inform residents of the readiness of the documents. If the applicant wants to get Rosreestr service in an electronic format, he or she may come to the MFC and use the public access center, which has printers, scanners, Internet access, as well as the center’s specialist assistance. Rosreestr services are among the five most popular services provided by the MFC.

Notaries. Notaries, as mentioned by their representative, are 8,000 in Russia, 700 in Moscow and a Federal law establishes a ceiling of number of notaries per number of residents.

Since January 1, 2016, following the adoption of Law 66, citizens can go to a notary for property registration rather than going to Rosreestr offices and submit applications faster. This law also establishes the composition of notary offices, and the responsibilities and functions of notaries. Notaries are unbiased and independent arbitrators protecting the interest of both parties involved in a transaction.

However, some regions have vacancies for notaries because there is no business for them. In some cases, state-sponsored notary offices have been put in place.

Civic Council. Civic Council has the responsibility to uphold the interests of citizens and businesses, managing complaints received and working on conflict resolution. The representative form the civic council is very happy with the 8th position of Rosreestr in Doing Business Registering Property index which confirms the good services provided to citizens. Businesses benefit from e- services, quality of service that is monitored by Ministry of Economic Development. This client- oriented approach shows the drastic change of attitude that has been implemented since the establishment of Rosreestr. Nevertheless, there is still room for improvement, especially in regards to quality of historical data. The Civic Council representative thanked Rosreestr management for being very constructive and aiming to reach consensus with partners. Quality of services and complaints received are also monitored in MFCs. In this regards, based on surveys performed on "Your Control" website, 98.8% of users are satisfied with the services provided by MFCs. Most feedbacks come from SMS received. Feedback can also be provided by phone or through the website.

Ministry of Economic Development. Representative from Ministry of Economic development mentioned that 15 laws were passed to improve property registration and they will all be in force by end of 2016. This has contributed to the improvement of property registration in this country.

In brief, all the participants to this Stakeholders workshop are very satisfied with the improvement of the quality of cadastral and property registration services provided by Rosreestr and by MFCs. E-queuing and electronic services, simplified procedures, improved legal framework, the efforts made in capacity building and training and the focus put on clients have contributed to the enormous progress made in this field. Training is expected for the unified system and procedure that will be implemented beginning of next year. In terms of future development, data quality improvement and registration of agriculture land have been identified as important topics.

Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR

Borrower’s ICR “Project Data Loan Agreement No. 4826-RU between the Russian Federation and the International Bank for Reconstruction and Development (hereinafter, “the Bank”) for financing the Registration Project (hereinafter, “the Agreement”) was signed on September 14, 2007 and became effective on April 23, 2008. According to the Agreement, the Bank granted a loan in the amount of up to 50 million US dollars for a period of 5 years with an amortization period until May 15, 2023 toward the cost of the Registration Project (hereinafter, “the Project”) to be co-financed by the Russian Federation in the amount of up to 51.21 million US dollars. The original closing date of the Project set forth in the Loan Agreement was May 31, 2014. Overall, one addendum and four amendments were made to the Loan Agreement:  An addendum regarding the sanctions against fraudulent participants of the Bank- financed projects;  An amendment changing the name of the Borrower’s agency responsible for the implementation of the Project - the Federal Service for State Registration, Cadastre and Cartography (Rosreestr) and amendments to correct and make additions to the definition of the Project’s components and subcomponents;  An amendment extending the original closing date of the Project (to February 28, 2015) and canceling part of the loan funds in the amount of USD 17 814 296.00, as requested by the Russian side (May 2014): Financing out of the loan Cancelled amount proceeds after Amendment, of the loan, USD USD Initial financing out of the loan 50,000,000.00 proceeds Amendment of May 29, 2014 17,814,296.00 32,185,704.00

 An amendment extending the scheduled closing date of the Project to February 29, 2016;  Raising of the maximum allowable deposit to the Project’s Special Account since December 22, 2015.

Until 2009, the Project was implemented by the Federal Registration Service within the Ministry of Justice of the Russian Federation. With the establishment in March 2009 of a single federal agency responsible for recording and registration policies and entrusted with the functions of the abolished Registration Service, Real Estate Cadastre Agency and Agency for Geodesy and Cartography, Rosreestr, operating under the jurisdiction of the Ministry of Economic Development, became the Implementing Agency. According to Government Decree No. 43 of January 28, 2005 On Procedures for Handling Projects Implemented by the Russian Federation with the Participation of International Financial Institutions, the Foundation for Enterprise Restructuring and Financial Institutions

Development was selected as the Project Implementation Unit (PIU) to perform the procedural and technical functions during the preparation and implementation of the Project, including those related to the preparation and execution of procurement arrangements, opening and maintaining of the Special Account, preparation of financial statements in compliance with the Bank’s procedures, assisting the Client to monitor the preparation of documents required for contract implementation, and organization of ongoing interaction with the Bank. On 29 February 2016, the Registration Project was completed. Project Objectives and Components Initially, the Project aimed solely to transform the state system of registration of property rights and related transactions. However, the merger of three agencies into the Federal Service for State Registration, Cadastre and Cartography (Rosreestr) required a restructuring of the Project in order to integrate the Project’s major activities into a single system of interrelated actions aimed to create a unified system of registration of property rights and cadastral recording. The new goals and objectives set for Rosreestr required an extensive review and update the Project, including the terms of reference/technical specifications already developed for the packages being procured. The restructuring of the Agreement in 2011 enabled Rosreestr to proceed to active implementation of the Project, gradually accelerate the disbursement rate, launch the procurement processes within a short time, and sign major contracts aimed at creating a unified cadastre/registration system in line with the Plan approved by Order #534 of the Ministry of Economic Development of December 18, 2009, and later to integrate the Project activities into the Roadmap and the federal target program. The objective of the Project was to improve the system of registration of legal rights to immovable property by developing standardized, clear and more efficient registration procedures, and by introducing an improved information management system for the registration offices. After the restructuring, for purposes of the Project the concept “property registration” covered not only the registration of rights to immovable property, but also the cadastral recording of immovable property. The restructuring of the Agreement did not change the Project Development Objectives to be achieved by addressing tasks aimed to simplify and improve procedures for registration of rights and transactions in immovable property, to improve the information flow from Rosreestr to users in order to facilitate the development of real property markets, to improve the quality of services provided by Rosreestr, and to strengthen technological linkages with other government agencies and other organizations dealing with real property. According to the Agreement, the Project consisted of four components: Component А. Institutional Development of the Federal Service for State Registration, Cadastre and Cartography – Rosreestr Main directions: improvement of legislation in the registration system, development of client service standards and monitoring of their implementation; dissemination of the registration service information to the general public and professional community; monitoring of the quality of registration services; and development of a modern data and document archival system.

Component В: Information and Communications Systems Main directions: analysis of the existing information systems; development and roll-out of the common unified software; conversion of existing registration data and documents to the format required for the creation of unified information system; and provision and installation of the equipment and software for information systems required for the creation of the unified information system. Component С: Improvement of Professional Skills of Rosreestr Staff Main directions: development and conducting of specialized courses and seminars, including preparation and issuing of operations manuals for Rosreestr staff; establishment of a distance learning facility; and provision of other forms of training, including local and foreign seminars and study tours. Component D: Project Management Main directions: Strengthening Rosreestr’s and the PIU’s capacity for the Project management, monitoring and evaluation, including audit, procurement, disbursement and financial management activities, through provision of technical assistance, training and office equipment and financing of operating costs. Key Results of the Project Component: Institutional Development of Rosreestr. This component consisted of five subcomponents and aimed to improve the regulatory framework, improve the quality of cadaster-registration services for users, disseminate registration service information, and follow-up the efficiency of the Project through monitoring of the improved customer services. The tasks of this component have been completed; the objectives have been achieved. 1. The project deliverables were used to prepare Federal Law No. 218-FZ of July 13, 2015 On the State Registration of Immovable Property (Unified Law), which concluded the creation of a legal framework for the unified federal system of registration of property rights and cadastral recording of property and ultimately integrated regulation in these two areas, including through the creation of a single information resource – the Unified State Register of Real Estate (EGRN), which integrated the State Cadastre of Immovable Property (SPC) and the Unified State Register of Rights and Transactions in Immovable Property (USRR). Overall, more than 100 legal acts regulating land and property relations were developed and adopted throughout the period of the Project. The Unified Law is scheduled to become effective on January 1, 2017. 2. The deliverables of the Project related to the development of client service standards include methodological materials on the organization of labor rating in the field of registration of property rights and cadastral recording of property, a scientific and methodological rationale for the development and introduction of departmental labor standards, and a standard methodology for improving labor productivity and reducing time required for data processing and provision of management information. 3. The following activities were carried out to raise awareness of the general public and business community of the ongoing reforms: Rosreestr’s website at www.rosreestr.ru was maintained and updated; the layouts of information brochures (booklets) were developed and currently this printed matter is distributed free of charge through Rosreestr's front offices and Multifunctional Centers (MFC); information materials on recent changes in cadastre-registration procedures

were prepared to provide applicants with user-friendly instructions on the registration of property transactions37; Rosreestr’s call center (8-800-100-34-34) was established to provide information about its operations to interested individuals and organizations across the entire country comprising 11 time zones. 4. Public opinion of the institutional reforms and Rosreestr’s direct efforts to create a modern cadaster-registration system was surveyed, including: (1) assessment of current quantitative and qualitative indicators of Rosreestr activities, including social evaluation; and (2) institutional impact assessment and project implementation control. These surveys supported by additional monitoring activities (surveys through SMS, telephone interviews, surveys in social networks, surveys conducted on the public service monitoring website “Your Control”) confirmed the tendency to positive perception of Rosreestr’s activities. Client satisfaction with of Rosreestr performance exceeded the established indicator and reached 95.7%; more than 88% of respondents had a positive opinion of Rosreestr’s efforts to simplify the registration procedures and to clarify the content of these procedures (according to the 2014 survey). 5. Another important result of the Project is the Archival Storage Strategy developed for Rosreestr. The Archival Storage Strategy is used to implement several directions of the respective federal target program: conversion of paper archived to electronic format (financing amount of about 17.7 billion rubles); and establishment of inter-regional archive centers (financing amount of about 8.5 billion rubles). In cooperation with the Ministry of Telecom and Mass Communications, Rosreestr is working to create and implement a platform for the national electronic archive; the platform will be used to manage the electronic archive and will be integrated with departmental application software (financing amount of about 1 billion rubles). Furthermore, modern archival equipment provided to Rosreestr under the Project helped organize an efficient storage and systematization of documents, and in some regions surrender leased premises, which is an undoubted benefit. Component: Information and Communications Systems. This component aimed to create a unified information system for registration of rights to immovable property and to strengthen technological linkages with other agencies dealing with real property, including the Federal Tax Service. The tasks of this component have been completed; the objectives have been achieved. 1. The existing recording and registration information systems were analyzed, and the development strategy for the unified recording and registration information system was designed, including functional and technical requirements; 2. Standard project designs and technical specifications for data processing centers in Rosreestr regional offices were developed (including engineering support systems, server equipment and LAN equipment); 3. The infrastructure of data processing centers and reserve data centers for the implementation of projects on introduction of the united cadaster-registration procedure was developed

37http://ls.rosreestr.ru/usecases.html, https://rosreestr.ru/site/fiz/info/buklety/, https://rosreestr.ru/site/fiz/zaregistrirovat-nedvizhimoe- imushchestvo-/?detail

(including engineering support systems, server equipment and LAN equipment); 4. Current technologies and automated systems for handling calls of Rosreestr’s applicants were analyzed, and the design of Rosreestr’s unified departmental call center (at the federal level) and standard call center designs at the regional level were developed; 5. Relevant equipment and software was procured, supplied and installed (equipment for the implementation of Rosreestr’s unified departmental call center; license database management facilities (at the federal and regional levels); equipment and encryption facilities for Rosreestr’s unified IP-network; equipment for the implementation of the USRR-SCIP federal information resource; and equipment for data processing and backup centers). The implementation of this Component helped Rosreestr computerize and automate public service delivery (e-services and e-governance). Rosreestr and its regional offices received equipment necessary for the deployment of elements of the Unified State Register of Real Estate (EGRN) being created as part of the modern registration system; the purchased equipment was rolled out and Rosreestr’s call center in Kursk was put into operation. The project solutions were also used to establish a call center in the Republic of Tatarstan. Component: Improvement of Professional Skills of Rosreestr Staff. This component aimed to strengthen the knowledge and skills of Rosreestr staff in the context of creating a new area cadaster-registration system. The Project supported 18 training courses, seminars and international conferences, which enabled the participants to become familiar with international best practices in property registration and service delivery, to acquire skills in the organization of procurement under projects financed by the World Bank, to learn about advantages of the project approach in achieving the stated objectives, and to exchange experience in the creation of a modern registration system with representatives of government and scientific circles of different countries and intergovernmental organizations. In addition, during the course of the Project over 33 000 employees took the training and improved their qualifications under agency programs, including 1 277 people trained in the technology of “one window”. Component: Project Management. This component aimed at creating the organizational and technological environment for the effective implementation of the Project. The tasks of this component have been completed; the objectives have been achieved. The Foundation for Enterprise Restructuring and Financial Institutions Development, selected as the Project Implementation Unit and staffed by qualified personnel, was one of the key elements of the Project’s management structure. The FER provided support in procurement, financial management and monitoring under the Project. In addition to the PIU, this component also financed short-term consultants selected to assist Rosreestr in addressing specific Project needs.

Main Factors Affecting the Project Implementation and Outcomes 1. Engaging a specialized organization (Project Implementation Unit, PIU) to perform the procedural and technical functions during the preparation and implementation of the Project,

48 including those related to the preparation and execution of procurement arrangements, opening and maintaining of the Special Account, preparation of financial statements in compliance with the Bank’s procedures, provision of assistance to Rosreestr in preparing documents required for international procurement and contracting, and organization of ongoing interaction with the Bank. At the same time, the project management arrangements within Rosreestr were well regulated and given much attention to; the Project activities were regularly monitored and coordinated with Rosreestr’s ongoing operations. 2. Support of the Russian Government and other federal executive agencies. Thus support made it possible for Rosreestr to complete all procedures initially required of the Russian Federation for signing of the Agreement and ensuring its effectiveness. With the support of the Russian Government and assistance of the Ministry of Finance and Ministry of Economic Development provided during the implementation of the Project and after its completion, Rosreestr received considerable amounts of financing from the federal budget to develop and improve the unified cadastre-registration system, which can be regarded as the sustainability of Project outcomes and commitment to the continuation of reforms that are fully consistent with the aims and objectives of the Project (the Roadmap activities are financed through the federal target program and the State Program) . Thus, activities aimed at the creation and improvement of the unified cadastre-registration system and enhanced property management were financed from various sources. 3. Operating stability / continuity of the Borrower’s project team. The institutional changes during the term of the Project did not cause difficulties in its implementation and achievement of results. Rosreestr managed to ensure continuity of the project team after the abolition of the Registration Service by retaining the key personnel, which facilitated consistent decision- making. 4. Operating stability / continuity of the Bank’s team. There were very few changes in the Bank’s project team, and some key experts were involved in the Project throughout the entire implementation period. 5. The Bank’s flexibility in managing the Project and recognizing the specifics of the country and the national legislation directly or indirectly affecting the Project activities. During the term of the Project, the Bank was flexible in responding to the ongoing changes taking into account, as much as possible, the Borrower’s requests. A flexible approach to the procurement of IT equipment and signing of contract amendments contributed, on the one hand, to timely procurement of equipment necessary for the registration system operation, and, on the other hand, to efficient disbursement of the Project funds. During the initial delays in project implementation, the Bank’s team members and management remained patient and allowed time for Rosreestr to complete all necessary transformations, despite unsatisfactory disbursement rates. 6. High level of project management. There was a well-defined project management system in place throughout the entire period of the Project. For the purposes of Project monitoring and operational coordination, an Inter- Agency Working Group was established of representatives of the agencies participating in the Project. In addition, respective thematic groups were set up which met, as needed, to address

49 on-going substantive issues under the Project. The preparation and implementation of the Projects was carried out by Rosreestr jointly with the Foundation for Enterprise Restructuring and Financial Institutions Development. Project related coordination between the Ministry of Finance, Rosreestr and the FER was governed by the Agency Agreement . All Project-related financial and organizational matters were handled by Rosreestr jointly with the FER and in coordination with other agencies participating in the Project within their competence, and respective approvals were granted by the Project governing bodies. In order to ensure an adequate level of project management, the FER developed the Project’s Operational Manual that included basic documents guiding day-to-day project activities: rules and procedures for project management, procurement, financial management system, personnel management, etc. In 2006, a Deputy Director of the Federal Registration Service was appointed the Project Director and endowed with adequate powers and resources to exercise these responsibilities. At a later time, a Deputy Director of the Federal Service for State Registration, Cadastre and Cartography became the Project Director. In 2006, a separate structural unit was established to monitor and coordinate the implementation of the Project – first, the Division for Development Programs and Projects within the Department of Legal Support and Development Programs in the Federal Registration Service, and later – the Department of Target Programs and Projects in Rosreestr. 7. A comprehensive and well-planned approach, when activities under the Project components were carried out in a well-thought-out sequence: procurement contracts were implemented based on the results and recommendations delivered under consultancy contracts on a respctive theme (for example, the deliverables of Contract RP/CQS-20-1 formed the basis for the procurement under Contract RP/ICB-06; the deliverables of Contract RP/CQS-25 were used for the procurement under Contracts RP/ICB-31 and RP/ICB31-1). 8. Sustainability of Project outcomes; integration of achieved results and needs into the Government’s long-term plans for further improvement of the existing system, including securing the required funding (for example, the Project outcomes are harmonized with the goals and objectives of the federal target program implemented by Rosreestr, the amount of FTP financing is over 42.5 billion rubles). 9. The Project’s support in establishing a modern regulatory and institutional environment conducive not only to making full use of advantages of the new unified system, but also to opening up opportunities for its further improvement and development, which was one of the key methodological approaches during the implementation of the Project. 10. Flexibility and prompt reformatting of procurement depending on the progress rate and the Borrower’s current needs, which made it possible to procure equipment required by Rosreestr with internal funds and efficiently reallocate the Project funds for other purposes (the Project envisaged several major procurements of modern IT equipment that caused active interest of IT-market participants, which considerably delayed the procurement process because, due to the complexity of the hardware/software solution to be procured and the need to amend the bidding documents based on numerous questions and requests for clarification submitted by potential bidders, the deadline for submission of bids had to be several times extended and the schedule of these procurement packages was frustrated).

Despite the difficulties encountered, Rosreestr and the PIU always remained committed to the established procurement procedures and the Bank’s rules. At the same time, the dynamic development of information technologies and uncompromising demand for efficient disbursement of the Project funds required adjustments in the Project activities and reallocation of the Project funds to other packages. In this situation, Rosreestr, inter alia taking into account constructive recommendations of the Bank's specialists, decided to reallocate resources to other purposes. World Bank and Borrower Performance World Bank Performance The World Bank performance during the Project preparation and supervision can be rated as highly satisfactory. The Bank promptly responded with needed changes caused by evolving economic situation and policy, which, in turn, increased the disbursement efficiency of the Project, and, at the same time, has not triggered significant amendment of its key objectives. Careful supervision of the Project by the Bank team ensured compliance with the Loan Agreement and the Bank's Procurement Guidelines. Cooperation with the Moscow office of the World Bank has been fruitful and helped to solve arising problems and, thus, contributed to the successful implementation of the Project. It should be particularly noted that the World Bank (and FAO representatives) played an important role in the successful implementation of the Project. The Bank’s support, methodological and organizational assistance, readiness for a constructive dialogue and understanding of specifics in the development of the Russian state system of registration of rights and cadastral recording were critical for the Project's highly successful implementation. As part of project monitoring activities, the Bank reviewed financial statements and progress reports; the Bank also undertook regular supervision missions to evaluate the implementation progress and achieved results and provided the Borrower with recommendations prepared on the basis of these missions. Overall, the interaction with the Bank was constructive and successful. The Bank’s project team promptly reviewed and approved procurement plans, project implementation plans and annual budgets in accordance with the Bank’s procedures. The Bank’s comments to procurement documents were constructive and contributed to improved effectiveness of selection/bidding procedures and the quality of procurement documents. The Bank’s comments and expert assistance during supervision missions enabled more objective evaluation of the implementation progress and achieved results. Borrower / Project Implementation Unit Performance Ministry of Finance of the Russian Federation

Throughout the project implementation period, the Ministry of Finance provided control over efficient and appropriate use of the borrowed funds, allocated funds for project co-financing from the federal budget on an annual basis, reviewed and approved project implementation plans, procurement plans and annual budgets, and delegated its representatives for participation

51 in the project management bodies (the Inter-Agency Working Group, the Evaluation Committee and thematic groups). Based upon Rosreestr’s proposals, the Ministry of Finance supported the restructuring of the Project during the reorganization in order to improve the Project’s effectiveness and achieve the stated objectives. The performance of the Ministry of Finance under the Project can be rated as highly satisfactory. Ministry of Economic Development of the Russian Federation The Ministry of Economic Development reviewed and approved project implementation plans, procurement plans and annual budgets, and delegated its representatives for participation in the project management bodies (the Inter-Agency Working Group, the Evaluation Committee and thematic groups). The Ministry of Economic Development directly supervised the thematic group responsible for the contract on improving the registration legislation. The performance of the Ministry of Economic Development under the Project can be rated as highly satisfactory. Federal Service for State Registration, Cadastre and Cartography Rosreestr became the Implementing Agency for the Project in 2009 after the reorganization of the Federal Registration Service. According to Government Decree No. 43 of January 28, 2005 On Procedures for Handling Projects Implemented by the Russian Federation with the Participation of International Financial Institutions, Rosreestr was involved in the implementation of project activities and achievement of the established indicators. Careful preparation of the Project and its efficient implementation made it possible to achieve good results. Rosreestr had the vision, the capacity and the willingness to implement the Project, and cooperated with the Bank to ensure that the Bank’s requirements were addressed. During the implementation of the Project, the Bank’s procurement and financial management rules and procedures were adhered to. Goods and services were delivered on schedule, and related payments were made fully and in due time. Alongside with the implementation of the Project, Rosreestr continued to improve its overall operating environment and strategy in notable ways, which had a positive impact on the achievement of the project development objectives and sustainability of Project outcomes. Certain slowdown in the implementation of the Project was caused by objective reasons (the need for Project restructuring due to structural transformations in the Russian public administration system, which ensured a more efficient disbursement of the loan proceeds; delays in the procurement of complex packages of IT equipment) and did not directly depend on Rosreestr. Besides, the delays did not affect the Project outcomes. Rosreestr performed well in designing and implementing the Project largely because the project development objectives and the Government’s strategy were aligned to create a modern land

52 administration system. All Project indicators were met thanks to Rosreestr’s strong commitment to the objectives and goals of the Project, and very dedicated and competent individuals involved in the Project despite changes in personnel and the merger that created some disruption. Therefore, the Borrower’s overall performance can be rated as Satisfactory. Project Implementation Unit According to Agency Agreement No. 01-01-06/04-52 of April 03, 2008, the Foundation for Enterprise Restructuring and Financial Institutions Development was actively involved in the preparation of the Project and, after the Agreement became effective, acted as the Project Implementation Unit throughout the entire project implementation period. According to the Agency Agreement, the FER prepared procurement documents, made arrangement for the procurement of goods (works, services) and provided support for contracts in conformity with the Bank’s rules and in accordance with the objectives of the Project; opened and maintained the Special Account; maintained accounting of external financing sources and co-financing in conformity with the Bank’s requirements and the Russian legislation; submitted project reports to Rosreestr, the Ministry of Finance and the Bank in conformity with the requirements of the Ministry of Finance and the Bank; contracted auditors acceptable to the Bank and the Ministry of Finance to audit the Project, etc. The FER prepared information materials and financial data in an efficient and timely manner and furnished them to Rosreestr, the Ministry of Finance and the Bank to enable prompt monitoring of the Project by all stakeholders. The FER performed its duties as the project implementation unit in an efficient and timely manner. The FER performance under the Project can be rated as satisfactory. Involvement of the International Bank for Reconstruction and Development The World Bank's involvement in addressing important issues in the Russian Federation makes it possible to bring additional long-term resources to the economy on favorable terms. The mechanisms of such projects are based on clear and transparent procedures governing the parties and ensuring adequate supervision of disbursement of funds. Alongside with the funding, the Bank renders support through its highly qualified project team, which provides assistance and access to international experience (best practices) gained from similar projects around the world. Lengthy procurement procedures in accordance with the Bank’s rules that had a certain impact on the duration of Project were eventually offset by the quality of services and goods delivered. During the preparation and implementation of the Project, Rosreestr’s project team, in cooperation with the Bank, has gained extensive experience in the interaction with international financial institutions, and in the procurement and contract implementation in accordance with Bank’s rules and procedures. Conclusion The main objectives of the Project have been achieved, and most monitoring indicators have been exceeded. Disbursement of the Project funds totaled about 99% of the Project budget. No doubt, it is hardly possible to solve all serious issues associated with the implementation of a modern registration system only with the Project funds; however, the measures taken in the

53 framework of the Project have made a significant contribution to the reforms. Consistent steps taken by the Russian Federation to implement the modern registration system and continuity of decisions governing development policies in the area of registration of rights and cadastral registration of real estate have demonstrated very good results already by the completion of the Project. Rosreestr’s commitment to continuous improvement of its operating conditions and strategy had a positive impact on the achievement of key objectives and sustainability of Project. While assessing Rosreestr’s performance during supervision missions, the Bank’s specialists noted good preparation of activities, Rosreestr’s willingness to implement the Project and its focus on interaction with the Bank in the carrying out of the requirements. Currently, Rosreestr has a unique experience of large-scale transformations, which resulted in the creation, within a short time, of an efficient cadastral-registration system across the vast territory of the Russian Federation. The results achieved by Rosreestr are part of the nationwide institutional reforms aimed at improving public administration and increasing the availability of public services. The establishment of Rosreestr as a result of institutional transformations in the structure of federal executive bodies, which affected the start-up of the Project, necessitated a re-evaluation of the main directions of Project implementation in line with the new conditions and tasks related to the creation of the unified state system of registration of rights and cadastral recording of property, which brought the Project to a higher level. A slow start-up of the Project was because it was necessary to develop an efficient implementation strategy, which made the Project, together with other programs implemented by Rosreestr, an essential tool of public policies in reforming land and property relations. Certain delays, which occurred at the beginning of the Project and in the procurement of some packages, did not have a significant negative effect on the Project outcomes but rather demonstrated Rosreestr’s susceptibility to change and its capability to promptly adapt the Project activities to new conditions in full compliance with the Bank’s rules and the objectives of the Project. The Project has demonstrated highly efficient use of available resources in achieving the end results and had a long-term sustainable impact on the land and real estate market in Russia. Taking into account the Project's relevance, efficacy and efficiency, despite the initial delays, we consider that the Project’s overall rating could be “highly satisfactory”.”

Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders

Comments from FAO:

“Under the FAO - World Bank Cooperative Agreement, FAO has been heavily involved in the land reform work undertaken by the Russian Federation over the past 15 years, as part of several World Bank financed projects, offering expertise and technical assistance in various areas, including information and communication technology, spatial data infrastructure, property valuation and taxation. As a result of this joint effort, significant progress has been achieved in increasing the transparency of the property registration process and improving public services in Russia. The Registration project was providing support to a wider government effort to improve public service delivery and guarantee secure land tenure for individuals and businesses in Russia. The project directly supported Rosreestr Information and Communication Technology Strategy 2010- 201238, which is in a frame of Russian Federation e-Government Strategy39, the Roadmap 2013- 2018 and Rosreestr Detailed Action Plan for the period 2013-2015. The Roadmap includes ambitious indicators, such as: average 5 days processing time for cadastre service (subdivision or merging properties, creation of new parcels) and 7 days for processing registration rights (sale/buy) at national level by 2018; 70% of the services should be provided electronically by 2018. As part of Registration project, FAO provided technical advice to the Bank team on the information and communication system design and development and was responsible for the supervision and implementation support of the largest project component: Component 2. Information and Communications System as well as in design and development of the Archive Strategy under Component 1. Institutional development. Meeting international standards: The Russian Federation is making a remarkable progress in improving governance of land tenure in line with the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security, which are an internationally agreed set of principles and standards for practices for the responsible governance of tenure, negotiated by all UN Member States and endorsed by the Committee on World Food Security in May 2012. Several examples: Transparency and the reduction of corruption are central to good governance. As such, Rosreestr data is freely available online: citizens can track the status of their applications at any time on the Rosreestr website, send SMSs directly to the head of Rosreestr, and provide feedback to the independent web portal “Vash Control” (your control) – results are publicly available online, two call centres are operating in 11 time zones in several languages 24 hours a day, 7 days a week, covering the entire territory of the Russian Federation, excellent information materials are available in all offices. Service delivery is an important part of good governance: citizens can obtain digital extracts in seconds, register, sell and buy properties online or visit any of the multifunctional centers. Civic participation is another important principle of good governance. Public councils have been set-up in each of Russia’s oblasts to bring together Rosreestr staff, citizens, academia, the private sector, and civil society. The Councils meets at least quarterly, deal with both general issues and specific cases, provide minutes and information for

38 Concept of Creation of an Integrated Federal System of State Registration of Real Property Rights and State Real Property Cadastre, approved by the Ministry of Economic Development of the Russian Federation, Order N 534/December 18, 2009 39 Plan of Transition to Public e-Services and the Electronic Performance of Public Functions by Federal Authorities, approved by the Directive of the Russian Federation Government, N: 1555p/October 17, 2009

55 representatives to disseminate to their constituency, and conduct a number of joint activities to promote and improve registration services. One of the ten main principles of implementation of the Voluntary Guidelines is continuous improvement. Rosreestr is planning the next steps: Complete the digital archive nationwide and establish central digital and paper archive centers; Increase the online services to 70% by 2018); Building National Spatial Data Infrastructure, which is critical for monitoring climate change and disaster risks mitigation and facilitates evidence based policy and sharing know-how with other countries and regions.

Doing Business rating. Rosreestr made an impressive improvement in the Doing Business Registering property index, from 51st place in 2011 to 12th place in the 2015 and to 8th place in the 2016 rating, which is an outstanding achievement. The 2016 edition of Doing Business includes some important changes as it now assesses not only the performance of property registration systems but also some qualitative elements: reliability, transparency, national coverage and dispute resolution. These improvements are the result of good policy and broad public participation, creation of efficient organizational structure, putting in place modern laws and simplified procedures, innovation, and the implementation of the biggest unified cadastre and registration ICT system in the world. The size of the country and the extremely short time for implementing big institutional, legal and technological reforms in combination with enormous efforts for capacity development are very impressive and unique. For a period of about 6 years after the unification of several land agencies at the end of 2009 till the end of 2015 Rosreestr achieved results, which no other country in the world managed to achieve in such a short time. Some of the services offered by Rosreestr are unique in the world, for example, clients are not obliged anymore to bring documents issued by government and municipal authorities. Various anticorruption measures are also very impressive and other countries can benefit from Rosreestr experience. Another good example is the outsourcing of front office functions to the municipal multi-functional centers and the plans for concentration of the archives to 7 interregional archive centers. Areas for future cooperation Rosreestr, FAO and the World Bank identified several priority areas for future collaboration, including capacity development, joint innovation projects related to improving property valuation and methodology, and the use of high resolution satellite imagery, unmanned aerial vehicles and crowdsourcing platforms. Rosreestr expressed its readiness to promote awareness of the Voluntary Guidelines among other Russian ministries and agencies dealing with natural resources, such as forests and water. Rosreestr is preparing a program to share their experience with other countries from the region as well as with other regions around the globe. Several countries have already expressed interest to visit the Russian Federation and benefit from Rosreestr experience.”

Annex 9. List of Supporting Documents

Project Appraisal Document, Russian Federation, Registration Project, May 15, 2006. Report No 36055-RU

Loan Agreement, Amendment to Loan Agreement

Country Partnership Strategy, Russian Federation, 2012-2016, November 18, 2011, Report No. 65115-RU

Country Partnership Strategy, Russian Federation, 200November 20, 2006 Report No. 37901-RU

Quarterly reports

Aide Memories, ISRs, Restructuring Papers for the Project

Annex 10. List of Contracts Realized under the Registration Project

# Contract title Established Contract amount, Completion Outcome on USD date

1. RP/QCBS-35 “Development of normative 4/19/2012 $ 673,499.00 11/29/2013 Final report approved (draft normative legal acts had legal acts, regulating state registration of been developed that were used in the preparation of rights to immovable property and its state the federal law “On State Registration of Immovable cadastral registering within establishment Property”, 218-FZ dated 7/13/2015) of the united system for cadastral registering and registration of rights to immovable property and transactions involving such property”

2. RP/CQS-47 “Development of techniques 4/19/2013 $ 60,000.00 1/15/2014 Due to the Consultant’s failure to meet its obligations, to monitor and evaluate service quality and the Rosreestr initiated termination of the contract develop client service standards for the whole country”

3. RP/CQS-45 “Preparation of information 12/29/2012 $ 46,093.00 12/17/2013 Publisher’s dummies of information booklets to materials on the Rosreestr activities, inform users on the Rosreestr services developed including information on the procedure of rendering recording and registration services”

4. RP/CQS-13 “Development of information 5/14/2012 $ 189,872.00 12/28/2012 Information support of the Rosreestr web site materials and information support of the (www.rosreestr.ru) completed, information uploaded,

Rosreestr web-sites system in the promotion of the web site in Russian and in English. information telecommunication network “Internet” at all levels” 5. RP/CQS-09 “Assessment of current 6/20/2011 $ 181,319.00 4/16/2012 A user survey has been performed to assess the quantitative and qualitative indicators of Rosreestr services provision Rosreestr activities, including social evaluation”

6. RP/QCBS-07 «Institutional Impact 1/20/2014 $ 795,000.00 10/15/2014 A user survey has been performed to assess the Assessment and Project implementation Rosreestr services provision control”

7. RP/CQS-39-1 “Improvement of interaction 8/15/2012 $ 150,467.00 7/08/2013 Legal and economic justification for the provision of of the Rosreestr territorial units and generalized information, including analytical subordinate institutions during information, based on united recording and performance of state services related to registration system data relevant individuals (users); presentation of generalized information, using the Government Services Portal and DCHC of including analytical information, based on the Rosreestr united recording and registration system data” 8. RP/CQS-48 “Development of 8/26/2013 $ 176,096.00 6/23/2014 Scientific and methodological justification for the methodological materials on organization development and introduction of departmental labor of labor rating in the field of registration of rating prepared. rights and cadastral registration of immovable property”

9. RP/QCBS-27 “Development of Strategy 3/30/2012 $ 1,274,400.00 3/13/2015 The Rosreestr Strategy for archive storage developed, for archive storage of information approved by Rosreestr ordinance № П/426 dated resources” 9/05/2014.

The contract deliverables were used in designing the FTP “Development of a Unified State System for the Title and Cadastre Registration of Immovable Property (2014 - 2019)”, and for the implementing the activity “Works to re-collate and digitize title documents and cadastral files” 10. RP/ICB-14 “Procurement and installation 11/21/2011 $ 2,348,974.00 3/25/2013 Equipment delivered and installed in 13 territorial of modern archiving mechanical systems” units of the Rosreestr and branches of the “FCC of the Rosreestr”

11. RP/ICB-14-1 “Procurement and 12/02/2013 $ 2,637,024.00 10/01/2014 Equipment delivered and installed in 19 territorial installation of modern archiving units of the Rosreestr and branches of the “FCC of the mechanical systems (Part 2)” Rosreestr”

12. RP/CQS-20-1 “Analysis of the existing 9/26/2011 $ 182,070.00 7/27/2012 A review of the current automation status of the recording and registration information Rosreestr, its territorial units and separate units systems. Elaboration of the development performed; requirements for the unified recording and strategy for the unified recording and registration system elaborated. The materials were registration information system. The used to develop specifications under contract development of functional and technical (RP/ICB-06) requirements for the unified recording and registration system.”

13. RP/CQS-25 “Analysis of requirements, 9/30/2011 $ 170,191.00 8/01/2013 Analysis performed and requirements to the Rosreestr development of standard project designs territorial units’ technology infrastructure for data and technical specifications for data processing centers developed. The materials were processing centers in the Rosreestr used to develop specifications under contracts territorial units (including engineering (RP/ICB-31, RP/ICB-31-1 ) support systems, server and LAN equipment)” 14. RP/ICB-31 “Preparation of data processing 7/17/2014 $12,287,671.00 12/29/2015 Equipment supplied to 74 territorial units of the centers infrastructure for implementation Rosreestr and to the Rosreestr HQ. of united recording and registration procedure (including engineering support systems, server and LAN equipment)” 15. RP/ICB-31-1 “Preparation of data 12/15/2014 $17,554,873.00 2/29/2016 Equipment supplied to 80 territorial units of the processing centers infrastructure for Rosreestr and to the Rosreestr HQ. implementation of unified recording and registration procedure (including engineering support systems, server and LAN equipment)”

16. RP/CQS-36 “Analysis of applied 12/14/2010 $ 201,506.00 4/18/2012 A comprehensive DCHC development concept technologies and automated systems for produced; specifications for DCHC hardware and handling calls of Rosreestr’s applicants. software, individual TORs and special-purpose Design of unified departmental call software elements developed; DCHC operation handling center (DCHC) of the Rosreestr arranged; DCHC support after launch. The materials (at the federal level) and standard designs were used in setting up a DCHC in Kursk and to of DCHC at the regional level” develop specifications under contract (RP/ICB-10)

17. RP/ICB-10 “Procurement and installation 12/12/2012 $ 2,179,371.00 9/08/2014 Equipment delivered and installed in DCHC in Kursk. of equipment. Implementation of unified departmental call handling center (DCHC) of the Rosreestr (at the federal and regional levels)” 18. RP/ICB-12 “Procurement of licensed 10/18/2011 $ 4,615,452.00 2/15/2013 Licenses to use Oracle DBMS and other products for database management software (at the DB of the Rosreestr HQ and its territorial units federal and regional levels)” procured. 19. RP/ICB-05 “Procurement of equipment, 4/13/2012 $ 7,448,954.00 9/13/2013 Equipment (VPM gateways) installed in 81 territorial development of unified IP-network and unit of the Rosrestr to establish a unified Rosreestr data encryption facilities for Rosreestr information network and provide secure information territorial units” exchange. 20. RP/ICB-06 “Procurement and installation 7/01/2013 $ 7,140,788.00 9/17/2014 Equipment for the FIR at the Rosreestr HQ delivered of equipment for implementation of the and installed. The FIR is used to process queries and USRR and SCIP federal information provide USRR services. resource (FIR)” 21. RP/AP-01 “Training in Turin (Italy) on: 4/20/2010 $ 5,059.00 6/07/2010 Training delivered "Procurement of Goods, Works and Services: International Practices” 22. RP/AP-02 ”Studying he Experience of 11/30/2010 $ 70,004.00 11/30/2010 Activity organized and delivered Establishing a Unified Registration System: the Case of the Netherlands” 23. RP/AP-03 “Training in Turin (Italy) on: 11/11/2010 $ 3,386.00 12/10/2010 Training delivered "Introduction to IFRS”

24. RP/AP-04 “Training in Turin (Italy) on: 6/03/2011 $ 35,705.00 6/30/2011 Training delivered "Procurement of Goods, Works and Services: International Practices” 25. RP/AP-05 «UK Experience in Establishing 9/30/2011 $ 34,913.00 3/01/2012 Activity organized and delivered a Registration System”

26. RP/AP-18 “Training in Turin (Italy) on: 5/28/2012 $ 30,235.00 5/31/2012 Training delivered "Procurement of Goods, Works and Services: International Practices” 27. RP/AP-19 “Training in Turin (Italy) on: 6/11/2013 $ 25,206.00 9/19/2013 Training delivered "Procurement of Goods, Works and Services: International Practices” 28. RP/AP-20 “Training in Turin (Italy) on: 11/29/2013 $ 38,131.00 2/18/2014 Training delivered "Selection and Hiring of Consultants in IBRD Projects” 29. RP/AP-20-1 Attending the Central Asia 5/16/2013 $ 3,828.00 7/05/2013 Activity organized and delivered Workshop on Procurement in Almaty (Kazakhstan) delivered under the aegis of the WB” 30. RP/AP-22 «Attending international 6/17/2014 $ 5,259.00 7/07/2014 Activity organized and delivered conference in Denmark on Spatial Data Infrastructure development "INSPIRE 2014"» 31. RP/AP-23 “Training in Turin (Italy) on: 8/19/2014 $ 16,510.00 10/28/2014 Training delivered “Project Management: Investment Projects” 32. RP/AP-24“Training in Turin (Italy) on:: 9/10/2014 $ 24,398.00 10/28/2014 Training delivered "Development Projects and Programs M&E” 33. RP/AP-25 “Training in Turin (Italy) on: 11/21/2014 $ 19,610.00 1/23/2015 Training delivered "Selection and Hiring of Consultants in IBRD Projects” 34. RP/AP-13 “Attending international 4/13/2011 $ 15,488.00 5/20/2011 Activity organized and delivered conference in the U.S.A (Washington, D.C.) “Land and Poverty”

35. RP/AP-14 “Attending international 4/04/2013 $ 27,098.00 4/19/2013 Activity organized and delivered conference in the U.S.A (Washington, D.C.) “Land and Poverty" 36. RP/AP-27 “Training in Turin (Italy) on: 11/09/2015 $ 17,383.00 11/13/2015 Activity organized and delivered "Introduction to IFRS” 37. RP/AP-28 “Training in Turin (Italy) on: 12/07/2015 $ 18,949.00 12/11/2015 Activity organized and delivered "Selection and Hiring of Consultants in IBRD Projects” 38. RP/AP-29 “Attending international event 1/21/2016 $ 20,071.00 1/25/2016 Activity organized and delivered organized by the FAO in Italy (Rome) on: “Improving Land Ownership and Use Management: FAO Support and Russia’s Best Practice” 39. RP/IC-09 «IT Consultant” 2/16/2010 $ 120,648.00 11/30/2012 Final report approved 40. RP/IC-10 «Budget and FM Consultant” 4/22/2011 $ 176,351.00 2/29/2016 Final report approved 41. RP/IC-12 «Training and Education 3/16/2011 $ 22,004.00 8/31/2011 Final report approved Consultant” 42. RP/IC-12-1 “Training and Education 5/10/2012 $ 67,264.00 4/25/2014 Final report approved Consultant” 43. RP/IC-13 «Consultant for the review and 7/15/2011 $ 32,015.00 3/30/2012 Final report approved development of recommendations on improving the regulatory framework under the component “Institutional Development” 44. RP/IC-20-1 “STC scientific and 1/10/2012 $ 14,829.00 11/30/2012 Final report approved methodological support” 45. RP/SH-1 “Procurement of Project 10/28/2011 $ 25,250.00 3/06/2012 Goods delivered and used under the Project management equipment” » Total Value of Contracts under the Project $61,183,214.00